Bandhan Bank on Sunday began operations as a full-fledged lender with 501 branches across the country, becoming the newest member of the estimated $2-trillion Indian banking industry.Kolkata-based microfinance institution (MFI), Bandhan Financial Services formally converted itself into a full service commercial bank, thus becoming the latest private sector bank in the country. Bandhan is one of the two entities, which were given full-service banking licences by the Reserve Bank of India (RBI) in April, 2014, from a list of 25 aspirants that included big business houses. The other is IDFC.
Bandhan Bank - Quantalog (1)
There aren’t too many like Bandhan’s founder Chandrashekhar Ghosh, who understands the true sense of financial inclusion in a country, where half of the adult population is still unbanked. Ghosh, who have started as a filed worker in the microfinance business, has tremendous experience in finding a business model in the low-income customer segment. For most existing private sector banks, financial inclusion has remained an activity forced by regulation than commitment or a viable business proposition.
Bandhan Bank - Quantalog (2)
Chandra Sekhar Ghosh born in a low income refugee family of six children which came to Kolkata, India in 1971 from Bangladesh when Bangladesh became independent from Pakistan.Chandra Sekhar Ghosh father Hariprada Chandra Sekhar Ghosh owned a sweet shop. Chandra Sekhar Ghosh use to support his father at the shop along with his studies. He completed his Masters in Statistics from Dhaka University in 1984. After completing his education he joined BRAC an NGO (non government organisation) in Bangladesh. Chandra Sekhar Ghosh returned to India in 1997 and joined his family business later worked with several NGO’s. Chandra Sekhar Ghosh quit his last job at Village welfare society in 2000.
Bandhan Bank - Quantalog (3)
Chandra Sekhar Ghosh started his first venture named Bandhan an NGO in November 2001 with a capital of INR 200000 ($3200) and three employees at Kolkata, West Bengal. The NGO provided finance to small and marginal women entrepreneur in areas not assisted by Banks. In 2009 Chandra Sekhar Ghosh registered Bandhan as a NBFC (Non Banking Finance Company) with Reserve Bank of India. In 2014 Reserve bank of India grants an approval for banking license to Bandhan.
Bandhan Bank - Quantalog (4)
The brand new Bandhan bank is hitting the ground running with an initial 1.43 crore accounts, a loan book of around Rs 10,500 crore and 19,500 employees. To begin with, it has got 501 branches, 2022 service centres and 50 ATMs across 24 states.
It plans to have 632 branches and 250 ATMs in 27 states by the end of fiscal year 2016, the bank said after Finance Minister Arun Jaitley inaugurated its operations here at the Science City Auditorium in Kolkata, at a function attended by regulators, policymakers and luminaries from the financial sector and corporate India.
Bandhan Bank - Quantalog (5)
Bandhan began as a not-for-profit micro-finance enterprise in 2001 with the idea of making a significant contribution towards alleviation of poverty by empowering women. It transformed itself into a non-banking finance company in 2006.