Opportunity for banks in rural sector in post COVID-19 scenario Chandrasekhar Ghosh

    Kolkata, Aug 14 (PTI) Private lender Bandhan Bank on
Friday said banks will have an opportunity to tap the rural
sector in the post COVID-19 scenario, as the pandemic has not
severely effected its economy.
    "The future opportunity lies in the hinterland. The
rural economy is less affected. Banks ,including Bandhan,
would like to focus on enterprises that have a good network in
rural areas," MD and CEO of Bandhan Bank Chandrasekhar Ghosh
said.
    Bandhan Bank has already disbursed around Rs 3,500
crore in rural locations last month, Ghosh said during a
webinar organised by the MCCI.
    The lenders' collection efficiency ratio has increased
considerably, which shows people are willing to repay loans,
he said.
    MSMEs, which contribute to the supply chain, also
present a potential opportunity for banks going ahead, he
said.
    Ghosh said banks are at present flush with funds and
credit offtake is slow, and there is a need to mobilise
deposits.
    He said Bandhan Bank has made sufficient provisioning
against risks which might surface after the moratorium
period is over at the end of August.
    The lender will also start opening online accounts
from next month, he said. PTI DC
RBT RBT

(This story has not been edited by THE WEEK and is auto-generated from PTI)