Bandhan Bank has written to the Reserve Bank of India seeking approval for his appointment, people familiar with the development said.
Babbar is currently heading HDFC Bank’s transportation, infrastructure and tractor finance verticals. Earlier, he headed rural business.
He would be Bandhan’s second executive director, the layer that the bank created recently under managing director Chandra Shekhar Ghosh. The bank in March appointed Ratan Kumar Kesh, who is entrusted with banking operations.
Bandhan Bank and HDFC Bank did not respond to ET queries on the matter till press time.
Bandhan’ s advances grew 12.3% year-on-year to Rs 1.08 lakh crore at the end of September while it made significant progress in diversifying the asset book. The share of microfinance, which is mostly unsecured lending, is coming down with higher focus on retail and housing loans.Its asset quality however remained a concern for investors with gross non-performing assets ratio being higher at 6.76% at the end of June. even as the industry average came down to 3.9% as of March this year. Bandhan’s gross NPA was at 4.9% at the end of March.