Bandhan Bank is focusing on improving its asset quality through a disciplined credit appraisal process, according to its Managing Director and CEO, Chandra Shekhar Ghosh. The bank has been facing challenges in its asset quality, with a rise in non-performing assets (NPAs) in recent years. However, under the leadership of its new chief, Sudatta Sengupta, the bank is taking steps to strengthen its credit appraisal and monitoring processes to minimize the risk of NPAs.
Sengupta, who took over as the chief of Bandhan Bank in January, has emphasized the importance of maintaining a strong asset quality. She has stated that the bank will focus on building a robust credit culture, with a disciplined approach to credit appraisal and monitoring. The bank will also be strengthening its risk management framework to identify and mitigate potential risks.
One of the key areas of focus for the bank will be to improve its credit assessment processes. The bank will be using advanced data analytics and machine learning algorithms to improve its credit scoring models and to identify potential credit risks. The bank will also be increasing its emphasis on collateral-free lending, which will help to reduce the risk of NPAs.
In addition to improving its credit appraisal processes, the bank will also be focusing on building a strong relationship with its customers. The bank will be investing in customer education and awareness programs to help customers understand the importance of credit discipline and to provide them with the necessary support to manage their debt.
Bandhan Bank has also announced plans to expand its microfinance business, which has been a key area of growth for the bank. The bank will be increasing its focus on lending to small and medium-sized enterprises (SMEs) and to the rural sector, which will help to diversify its loan portfolio and reduce its dependence on a single segment.
Overall, Sengupta’s strategy for Bandhan Bank is focused on building a strong and sustainable business model, with a emphasis on asset quality, risk management, and customer relationships. With its disciplined approach to credit appraisal and monitoring, the bank is well-positioned to improve its asset quality and to drive long-term growth.
The bank’s efforts to improve its asset quality are expected to yield positive results in the coming quarters. The bank’s management is confident that its focus on disciplined credit appraisal and monitoring will help to reduce the risk of NPAs and to improve its overall asset quality. As a result, investors and analysts are expecting the bank to report a improvement in its asset quality and a reduction in its NPA ratios in the coming quarters.