Bandhan bank a private sector financial institution is hopeful to give a big push to the affordable housing sector soon after getting the merger procedure with Gruh Finance completed.
Shekhar Ghosh, the MD and CEO of the bank informed.
Ghosh also told the media that a merger process already got sanction from the Reserve Bank of India [RBI] was expected to be completed by December.
He also said that we have got the approval from the RBI. Now we are awaiting permission from the SEBI after which we will approach the NCLT. He gave this information while attending the bank branch opening at Burrabazar in North Kolkata.
CEO Ghosh further said that the entire process is expected to be over by the end of this year, after which the bank will give a big push to the affordable housing sector.
Unlike earlier, the non-operative promoter Bandhan Financial Holding will now hold 61 percent share that is 20 percent less than what it actually had after the merger with Gruh Finance to 61 percent from 80 percent. There is also a good plan to get reduced to 40 percent.
He also said that there was a good demand for affordable housing with the demand pegged at two crore units. Last week, the bank got the approval for open 25 more branches and we are opening eight out of them by 31st March. The remaining branches will be opened in the next financial year.
After adding the Burrabazar branch, the bank’s total number of branches stands at 986, and the Bandhan’s deposits touched Rs 34,639 crore and loan book at Rs. 35,599 crore.
He also informed that the bank’s NPA stood less than 0.7 percent of advances. For Gruh Finance, he said that the company focused its activities in Maharashtra and Gujarat till now.