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Bandhan Bank expects recovery to start from second quarter of FY21

May 14, 2020, 12:39 IST
PTI
Kolkata, May 14 () Private lender Bandhan Bank saidon Thursday that recovery of loans extended to micro-creditcustomers will happen from the second quarter of the 2020-21fiscal.

The bank's MD and CEO Chandrashekhar Ghosh saidcustomers in that sector are not facing problems in theirbusinesses as they deal with basic goods and the local supplychain.

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"But, owing to the lockdown, we are not being able tophysically visit them to collect the instalments. Hence, wecategorised those under the moratorium arrangement," he told.

Ghosh, however, said such customers did not seek anykind of moratorium.

"They are doing business and have the money. They arenot under any stress," he said.

"Till the time the lockdown prevails, there will besome challenges. We spoke to the micro-credit customers andgot the feedback that transactions will resume once the curbsare lifted. In the meantime, they are keeping cash in hand tomeet any kind of exigencies," Ghosh added.

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Once the lockdown is lifted, they will require four tosix weeks time to repay the entire loan instalment, he said.

Bandhan Bank, which transformed into a full-fledgedlender from an MFI, plans to pare micro-credit exposure overthe next three to five years from 61 per cent at present. DCRBT RBT

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