Bandhan Bank Sheds ₹7,000 Crore Bulk Deposits: How Borrowings and Securitisation Could Drive Future Credit Growth

Bandhan Bank Sheds ₹7,000 Crore Bulk Deposits: How Borrowings and Secularisation Could Drive Future Credit Growth

80-Word Summary

Bandhan Bank has reduced around ₹7,000 crore in high-cost bulk deposits as part of its strategy to improve profitability and strengthen its funding mix. 

To support future loan growth, the bank may increasingly rely on borrowings and secularisation instead of expensive deposits. 

This move aims to optimise funding costs, enhance net interest margins, and maintain healthy credit expansion while improving overall balance sheet efficiency. 

Investors will closely monitor how this funding strategy impacts earnings and lending performance.

Description

Bandhan Bank has taken a strategic step by reducing approximately ₹7,000 crore in bulk deposits, signaling a shift toward more efficient funding sources. The bank is expected to use borrowings and securitisation to sustain credit growth while lowering funding costs.

Key Highlights

• ₹7,000 crore bulk deposits reduced to improve funding efficiency.
• Focus on lowering the cost of funds and protecting profitability.
• Borrowings may become an important source of liquidity.
• Securitisation could help free up capital and support loan growth.
• Strategy aims to improve net interest margins (NIMs).
• Credit growth is expected to continue despite lower bulk deposits.
• Investors will watch the impact on earnings, asset quality, and future lending.
• The move reflects a broader banking trend toward diversified funding sources and stronger balance sheet management.