Bandhan Bank

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Bandhan Bank
Private Sector Bank
Traded asBSE950041
Financial services
Founded23 August 2015; 4 years ago (2015-08-23)
FoundersChandra Shekhar Ghosh
HeadquartersKolkata, West Bengal, India.
Number of locations
4,288 Banking outlets [1] (2019)
Key people
Increase 1,704.47 crore (US$240 million) (2017)
Increase 1,111.95 crore (US$160 million) (2017)
Total assetsIncrease 30,236.09 crore (US$4.2 billion) (2017)
Total equityBandhan Financial Holdings Limited
Number of employees
37,331 (2019) [3]

Bandhan Bank Ltd. is an Indian banking and financial services company headquartered in Kolkata, West Bengal.[4] Bandhan Bank is present in 34 out of 36 states and Union Territories of India. Bandhan Bank has 4,288 banking outlets pan-India serving more than 1.9 crore customers. Of these outlets, 1,009 are bank branches, 3,084 Doorstep Service Centres (DSCs) and 195 GRUH centres. The bank also has 485 ATMs.

On June 17, 2015, the Reserve Bank of India granted the universal banking licence to Bandhan Bank. The same year, on August 23, the bank started operations with 501 branches, 50 ATMs and 2,022 SC.[5]

The bank has mobilised deposits over Rs.54,908 crore and the loan outstanding stands at Rs.65,456 crore, as on December 31, 2019.[5]


Bandhan started in 2001 as a not-for-profit enterprise providing microloans to the underprivileged sections of the society.[6] It focussed on financial inclusion and women empowerment through sustainable livelihood creation. 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.

In April 2014, Bandhan received an in-principle approval for setting up a universal bank. On June 17, 2015, the Reserve Bank of India granted the universal banking licence to Bandhan Bank. Two months later, on August 23, Bandhan Bank commenced operations. 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.

The then Hon’ble Union Finance Minister, Shri Arun Jaitley, inaugurated the bank on August 23, 2015, in Kolkata, making Bandhan Bank the first bank to be set up in Eastern India post-Independence.

On March 27, 2018, Bandhan Bank got listed on the bourses and became the 8th largest bank in India by market capital, on the day of listing itself.[7]


Bandhan started its microfinance operations from Bagnan, a small village 60 km from Kolkata. 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.


Bandhan Bank is a subsidiary of Bandhan Financial Holdings Limited (BFHL).[citation needed] BFHL is a wholly owned subsidiary of Bandhan Financial Services Limited (BFSL). 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.[8][9]

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.[10] The IPO got oversubscribed by almost 15 times at the end of the three-day long issue.[11][12] On its stock exchange debut (27 March 2018), the equity opened at Rs 487.33 on the National Stock Exchange and closed at Rs 476.85, 27 percent over its issue price of Rs 375.[13]


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


  1. ^ "Annual report FY 2018-19" (PDF).
  2. ^ "Bandhan Bank looks to ramp up home loan portfolio" (24 October 2019).
  3. ^ "Annual report FY 2017-18" (PDF).
  4. ^ "Bandhan to Focus on Deposits in Initial Years". NDTV. Retrieved 26 February 2015.
  5. ^ a b "About Bandhan Bank: Bandhan Banking in India". Bandhan Bank.
  6. ^ "India's Best Banks: Banking For Inclusivity". Retrieved 14 October 2019.
  7. ^ "8th largest bank in India". Economics Times. Retrieved 28 March 2018.
  8. ^ "Bandhan Bank: Former RBI deputy governor HR Khan joins Bandhan Bank board". Economic Times. Retrieved 11 April 2018.
  9. ^ "Bandhan Bank Management Information - Details of Bandhan Bank Management". Economic Times.
  10. ^ "Shares of Bandhan Bank get listed". Motilal Oswal. Retrieved 27 March 2018.
  11. ^ "Bandhan Bank IPO subscribed 14.6 times on last day". Live Mint. Retrieved 20 March 2018.
  12. ^ "Bandhan Bank IPO subscribed 14.60 times on final day". Money Control. Retrieved 19 March 2018.
  13. ^ "Bandhan Bank makes stellar debut, closes up 27% at Rs 476.85". Money Control. Retrieved 27 March 2018.
  14. ^ "Bandhan Bank gets CCI approval to acquire Gruh Finance". moneycontrol. Retrieved 17 April 2019.
  15. ^ "Bandhan Bank gets shareholders' nod to merge Gruh Finance - Times of India". The Times of India. Retrieved 1 August 2019.