Bandhan Bank

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Bandhan Bank
Financial services
Founded23 August 2015 (5 years ago) (2015-08-23)
FoundersChandra Shekhar Ghosh
HeadquartersKolkata, West Bengal, India.
Number of locations
5,197 Banking outlets [1] (2020)
Area served
Key people
RevenueIncrease 78.73 billion (US$1.1 billion) (2020)
Increase 54.46 billion (US$760 million) (2020)
Increase 30.24 billion (US$420 million) (2020)
Total assetsIncrease 917.18 billion (US$13 billion) (2020)
OwnerBandhan Financial Holdings Limited (100%)
Number of employees
47,260 (2020) [2]
Capital ratio27.43%[citation needed]

Bandhan Bank Ltd. is an Indian banking and financial services company, headquartered in Dalhousie Kolkata, West Bengal.[3] Bandhan Bank is present in 34 out of 36 states and Union Territories of India. Presently Bandhan Bank has 5,197 banking outlets pan-India serving more than 2.25 crore customers.

On 17 June 2015, the Reserve Bank of India granted the universal banking licence to Bandhan Bank. The same year, on 23 August, the bank started operations with 501 branches, 50 ATMs and 2,022 DSC.[4]

The bank has mobilised deposits over ₹71,188 crore and its total advances stand at ₹80,255 crore, as on 31 December 2020.[4]


Bandhan Bank started in 2001[5] as a not-for-profit enterprise providing microloans to the underprivileged sections of society.[6] It focused on financial inclusion and women empowerment through sustainable livelihood creation[5]. In 2006, Bandhan acquired an NBFC to scale up its microfinance activities. It turned into an NBFC-MFI to further its core objective of financial inclusion. In 2010, Bandhan was recognised as the largest MFI in the country.[citation needed]

On 2 April 2014, Bandhan received an in-principle approval for setting up a universal bank. On 17 June 2015, the Reserve Bank of India granted the universal banking licence to Bandhan Bank. Bandhan Bank commenced operations on 23 August 2015 after Bandhan Financial Services Limited ('BFSL'), its parent company transferred its entire micro finance business to the bank and the bank simultaneously commenced general banking activities[5]. Its public shareholders then included International Finance Corporation; an arm of GIC, the sovereign wealth fund of Singapore; and Small Industries Development Bank of India.[citation needed]

The then Hon’ble Union Finance Minister, Shri Arun Jaitley, inaugurated the bank on 23 August 2015, in Kolkata, making Bandhan Bank the first bank to be set up in Eastern India post-Independence.[7] The bank had significantly improved its presence in East and North East India due to shortage of other banking organisations[5].

On 27 March 2018, Bandhan Bank got listed on the bourses and became the 8th largest bank in India by market capital, on the day of listing.[8]


Union minister Arun Jaitley lights the lamp at the inauguration of Bandhan Bank in Kolkata on 23 August 2015

Bandhan started its microfinance operations[5] from Bagnan, a small village 60 km from Kolkata and is the first instance in India of a microfinance entity transforming into a universal bank and focused on serving underbanked and underpenetrated markets. The model followed was individual lending through group formation. In 18 years, Bank has presence in 34 states and union territories with special focus on the eastern and underdeveloped states of Northeast India.It serves micro banking and general banking needs offering loans for a variety of asset and liability products and services. Its asset products consists of retail loans including a substantial portfolio of micro loans as well as micro small and medium enterprise ('SME') loans and small enterprise loans and in addition to loan and deposit products the bank also offers other banking products and services like debit cards,internet banking,mobile banking, EDC-POS terminals, online bill payment services and the distribution of third-party general insurance products and mutual fund products which helps to generate non-interest income and cater towards the additional needs of its customers.


Bandhan Bank is a subsidiary of Bandhan Financial Holdings Limited (BFHL).[9] BFHL is a wholly owned subsidiary of Bandhan Financial Services Limited (BFSL). Bandhan Financial Services (BFSL) commenced business in microfinance in 2006 and acquired Bandhan Bank in 2009 and also its micro finance business[5]. Later BFSL transferred its microfinance business to the Bandhan bank as the former became India's largest microfinance company by number of customers and size of loan portfolio and Bandhan Bank Limited was incorporated as on 23 December 2014 at Kolkata, West Bengal, as a public limited company and RBI issued licence in terms of Section 22 of the Banking Regulation Act on 17 June 2015 authorising the Bank to carry on banking business. BFSL's public shareholders include International Finance Corporation (IFC), IFC FIG Investment Company, Small Industries Development Bank of India (SIDBI), and Caladium Investment Pte Ltd., a company managed by GIC Special Investments Private Limited.

Board of directors[edit]

The board of directors included Harun Rashid Khan, former deputy governor of Reserve Bank of India, for a five-year term between 2011 and 2016.[10][11]

Initial public offering and stock exchange listing[edit]

Bandhan Banks's equity shares are listed on the Bombay Stock Exchange and National Stock Exchange of India.[12] The IPO got oversubscribed by almost 15 times at the end of the three-day long issue.[13][14] On its stock exchange debut (27 March 2018), the equity opened at ₹487.33 on the National Stock Exchange and closed at ₹476.85; 27 percent over its issue price of ₹375.[15]


In January 2019, Bandhan Bank initiated the process of acquisition of GRUH Finance, a Housing Development Finance Corporation Limited backed housing finance company in the share-swap deal by way of Scheme of amalgamation (‘Scheme’). RBI accorded its no-objection to the Scheme on 14 March 2019. The bank has also received no-objection on the Scheme from the BSE and the NSE on 3 April 2019. On 15 April 2019, the Competition Commission of India (CCI) has also approved the Scheme. [16] On 30 July 2019, bank received the approval of its shareholders for the proposed acquisition of GRUH Finance. [17] Further the bank obtained the approval of NCLT, Bench at Kolkata on 27 September 2019. Then GRUH Finance officially merged into Bandhan Bank on 17 October 2019, and the combined balance sheet of the bank's Q2 results crossed the ₹1 lakh crore mark.

See also[edit]


  1. ^ "Annual report FY 2018–19" (PDF).
  2. ^ "Annual report FY 2017–18" (PDF).
  3. ^ "Bandhan to Focus on Deposits in Initial Years". NDTV. Retrieved 26 February 2015.
  4. ^ a b "About Bandhan Bank: Bandhan Banking in India". Bandhan Bank.
  5. ^ a b c d e f "Bandhan Bank Ltd". Business Standard India. Retrieved 6 May 2021.
  6. ^ "India's Best Banks: Banking For Inclusivity". Retrieved 14 October 2019.
  7. ^ Bandyopadhyay, Tamal (23 August 2015). "India gets a new bank". mint. Retrieved 14 October 2020.
  8. ^ "8th largest bank in India". Economics Times. Retrieved 28 March 2018.
  9. ^ "Ownership rules: Promoter dilutes 20.95% stake in Bandhan Bank". The Financial Express. 4 August 2020. Retrieved 14 October 2020.
  10. ^ "Bandhan Bank: Former RBI deputy governor HR Khan joins Bandhan Bank board". Economic Times. Retrieved 11 April 2018.
  11. ^ "Bandhan Bank Management Information – Details of Bandhan Bank Management". Economic Times.
  12. ^ "Shares of Bandhan Bank get listed". Motilal Oswal. Retrieved 27 March 2018.
  13. ^ "Bandhan Bank IPO subscribed 14.6 times on last day". Live Mint. Retrieved 20 March 2018.
  14. ^ "Bandhan Bank IPO subscribed 14.60 times on final day". Money Control. Retrieved 19 March 2018.
  15. ^ "Bandhan Bank makes stellar debut, closes up 27% at Rs 476.85". Money Control. Retrieved 27 March 2018.
  16. ^ "Bandhan Bank gets CCI approval to acquire Gruh Finance". moneycontrol. Retrieved 17 April 2019.
  17. ^ "Bandhan Bank gets shareholders' nod to merge Gruh Finance – Times of India". The Times of India. Retrieved 1 August 2019.

External links[edit]