Great performance! Despite coronavirus lockdown, Bandhan Bank achieves this feat

Despite 21-day complete lockdown in India due to coronavirus, Bandhan Bank has performed really good to achieve a big feat! The bank has confirmed that its total deposits grew by 32 per cent to Rs 50,073 crore during the fiscal ended March 2020. The bank had total deposits of Rs 43,232 crore as at end of March 2019. 

According to Bandhan Bank in a regulatory filing, "The retail deposits formed bulk of the total deposits at 78.4 per cent, which showed an increase of 34 per cent to Rs 44,760 crore as on March 31, 2020.

The bank's retail deposits stood at Rs 33,445 crore in the year ago fiscal." The data compares the standalone business as on March 31, 2019, to that of merged entity by end of March 31, 2020. 

Merger with Gruh Finance 

In October 2019, the had bank merged with Gruh Finance in order to bring down shareholding of the promoter from 82.26 per cent to 60.96 per cent. 

Loans and advances 

Loans and advances jumped by 60 per cent to Rs 71,825 crore during 2019-20, from Rs 44,776 crore.

The bank said that the percentage of microbanking deposits to total deposits was?5.7 per cent by the end of fiscal FY20. 

Microbanking

On microbanking business, Bandhan Bank said its collection efficiency pan-India for the period from January 1, 2020, till March 21, 2020, stands at nearly 98.7 per cent.

"Further, deposits from microbanking customers continues to be strong and stable despite three weeks of lockdown," Bandhan Bank said. Liquidity coverage ratio (LCR) as on March 31, 2020, stood at nearly 161 per cent.

Excess liquidity

"As on March 31, 2020, the bank was having excess liquidity amounting to about Rs 8,402 crore. In addition, the bank is in a position to draw up to nearly Rs 1,815 crore under MSF (marginal standing facility which is the rate at which banks can borrow overnight loans from RBI against the approved government securities) of RBI," the bank added.

Capital adequacy ratio

The lender's capital adequacy ratio as on March 31, 2020, stood at 26.7 per cent and tier 1 Common Capital Ratio (CET 1) was at about 25.5 per cent.