Serving emerging India : Bandhan Bank unveils Vision 2025

The Bank’s aspiration is to be an affordable financial institution which provides simple, cost effective and innovative financial solutions in an inclusive and responsible manner.

In its 2019-2020 annual report, the Bank said that it aims to enhance its performance across parameters by benchmarking itself against best-in-industry standards. It will continue to focus on growing its book size and improve customer experience through hi-tech digital interventions and its hi-touch relationship building.

Key focus areas in the next five years would be diversification of asset portfolio with modern underwriting and collection capabilities and strengthening people capabilities, including by hiring fresh talent, for growth. The Bank also seeks to focus on development of in-house technology, analytics and digital capabilities and consolidation of CASA (current account savings account) by developing deeper customer engagement, the annual report said. 

“Your Bank has a large customer base, a sharp focus on the retail segment, a wide presence in semi-urban and rural areas, a robust technology back-end and an employee force that is passionate, dedicated and motivated. These facets give your Bank a position of unique advantage for the next spurt of growth. In the next few years, with the expansion of the distribution network, your Bank will aim to diversify and continue to increase its loan book further, and build a dependable and sizeable deposit franchise as well,” Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer, Bandhan Bank said in his letter to shareholders.  

The Bank will also increase its focus on building deep relationships with small and medium enterprises, on the biggest engines of economic growth and employment generation in India. "The SME segment is expected to contribute highly to the growth story with rising demand from the diverse business entities in the country," the Bank said in its annual report. Commercial banking is expected to be a major engine of credit growth as penetration of formal credit improves with GST and digitisation of transactions. With a comprehensive range of products and services, the bank is keenly focussed on serving customers’ needs.

Bandhan Bank now has a fair mix of secured and unsecured loans. It also crossed INR ?1 lakh crore of total business, while its customer strength crossed the two-crore mark in FY 19-20. Its total business size as on March 31, 2020 stood at ?1.28 lakh crore. 

Post COVID-19, the urban-rural equation has changed. Many workers who had moved to urban centres to earn livelihoods, have returned to their places of origin, and are determined to earn their livelihoods locally from home. In such a scenario, Bandhan Bank is in a good position with a significant presence in semi-urban and rural centres, which will enable it to serve growing local needs.

“I am happy to share that even in the first quarter of FY 2020-21, when the effects of the lockdown were truly experienced, your Bank has been able to garner growth. In the early days of the end of lockdown in various parts of the country, your Bank saw encouraging signs of revival of business. What’s even more heartening to note is that your Bank was able to grow its deposit book during this period, which is the true indication of the trust and faith that customers repose in your Bank,” Ghosh said.

Bandhan Bank is committed to its goal of inclusive banking, working towards making formal banking a habit, and taking that habit to the remotest corners of India and different cross sections of people. This is a bigger responsibility for the Bank now, given the impact of the pandemic we are witnessing, the Bank said.

While Bandhan Bank is making a positive difference to society through its banking services, it is also creating a difference on the ground on the back of its social impact programmes in the areas of poverty alleviation, healthcare, education and financial literacy. The Bank executes the development activities through Bandhan Konnagar, which is its implementing agency for these programs. As on March 31, 2020, the Bank transformed the lives of over 25 lakh beneficiaries across 12,900 villages and 12 states in India.

Being headquartered out of Kolkata, the bank is committed to deepen its penetration in West Bengal through its banking services, as well as through its social impact programmes.

The Bank believes opportunities in retail lending will also emerge once growth momentum recovers.