Bandhan management has indicated that collection efficiency in the MFI business has recovered to 55-60%, and it expects this to further improve to ~70% by Jun'20. The bank has indicated that collection trends in the housing/SME portfolio are currently similar to Apr'20 levels, however, an improvement is expected in the coming months. Bandhan is maintaining a cautious stance toward disbursements in 1HFY21 and is focused on improving collections trends. However, due to the COVID-19 crisis, credit cost is expected to rise to 1.5% in FY21E as the bank carries an additional provision buffer of INR10b INR6.9b made toward COVID; INR3.1b additional provisions on standard assets higher than regulatory requirement which forms ~1.5% of total loans. Given the current assessment based on customer feedback and collection trends, the 1.5% credit cost estimate would be sufficient to manage the current impact of the COVID crisis.