Chandra Shekhar Ghosh, MD & CEO of Bandhan Bank, on Monday, said that these are challenging times for microcredit financiers.
The bank reported earnings for the June-ended quarter, wherein the net interest margin (NIM) has come in at an 8-quarter high even though assets under management (AUM) growth looks very weak. The asset quality has deteriorated for the bank owing to high slippages.
Speaking in an interview with CNBC-TV18, Ghosh said, “April-June quarter was bad compared to the first wave (COVID-19), and also affected rural and semi-urban areas, where a large number of microcredit borrowers are there and it’s a big challenge.”
“However, the caseload has come down and people have started their business, so collection efficiency has improved from last quarter to this quarter,” he said.
On growth, Ghosh said, “If third wave (COVID-19) does not come, if puja (Durga Puja) and Dussehra come in a good way then credit growth this year will be as usual as last year.”
For the entire management interview, watch the video