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Bandhan Bank

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Title: Bandhan Bank  
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Subject: Prepaid Payment Instruments in India, List of records of India, Pandyan Bank, Lakshmi Vilas Bank, TNSC Bank
Collection: Banks Established in 2014, Banks of India, Companies Based in Kolkata
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Bandhan Bank

Bandhan Bank
বন্ধন ব্যাঙ্ক
Scheduled Commercial Banking Company
Industry Banking, Financial services
Founded 23 August 2015
Headquarters Kolkata, West Bengal, India
Area served
India
Key people
Ashok Lahiri (Chairman)
Chandra Shekhar Ghosh (MD, CEO)
Products Agri Loans
Micro Loans
MSME Loans
Retail Loans
Number of employees
19,500
Website .combandhanbank

Bandhan Bank Ltd. (Bengali: বন্ধন ব্যাঙ্ক) is an Indian banking and financial services company headquartered in Kolkata, West Bengal.[1]Bandhan, which started as a micro-finance company in 2001, received banking licence by Reserve Bank of India in 2014.[2][3][4]

On 23 August 2015, Union Finance Minister Arun Jaitley officially inaugurated the bank in Kolkata. Initially it opened with 501 branches across India. Bandhan Bank was incorporated on 23 December 2014 as a wholly owned subsidiary of Bandhan Financial Holdings. Bandhan received the in-principle approval of the (RBI) for setting up a universal bank in April 2014; the banking regulator gave its final nod in June 2015.

Incidentally, Kolkata-headquartered Bandhan is the first bank to be set up in eastern part of India after Independence.

Bandhan Financial Holdings is owned by Bandhan Financial Services Limited (BFSL), the largest micro finance organization in India. Its public shareholders include International Finance Corporation (IFC), Small Industries Development Bank of India (SIDBI), Caladium Investment Pte. Ltd. (a company managed by GIC Special Investments Private Limited), Bandhan Employees Welfare Trust, and a few individuals.

The RBI licensing norms stipulate that a new bank must have a ₹ 500 crore capital. Bandhan Bank starts with a capital base of ₹ 2,570 crore and this will be raised to ₹ 3,052 crore.[5]

Contents

  • Management 1
  • History 2
  • Branding, advertising and consulting 3
  • IT and operation support 4
  • Human resources management 5
  • Investors 6
  • External links 7
  • References 8

Management

Bandhan Bank appoints Dr. Ashok Lahiri as Chairman. He had been the chief economic adviser to Government of India earlier. While the founder Chandra Shekhar Ghosh will act as managing director and chief executive officer.[6]

History

Founded in 2001, under the visionary leadership of Mr. Chandra Shekhar Ghosh, a senior Ashoka Fellow, BFSL is involved in giving loans to small borrowers who have no access to formal banking services. In past 15 years, BFSL has earned credibility and many accolades for financing small entrepreneurs and around 6.7 million women borrowers. The organization has a network of 2,022 branches spread across 22 Indian states and Union territories, serviced by over 15,000 employees. As on 31 March 2015, BFSL had a loan book of around ₹ 9,524 crore and an impressive repayment rate of over 99%.

The 2,022 BFSL branches are being converted into door step service centres for Bandhan Bank which started with 501 branches and 50 ATMs on day one. It will have 12000 branches and 150 ATMs across 27 states by the end of fiscal year 2015-16. Its total staff strength is around 19,500.

Bandhan Bank seeks to offer its world-class banking products and services to urban, semi-urban and rural customers alike. While it has a pan India presence, the special focus remains on eastern and north-eastern part of India. It is a bank for all but the focus remains unchanged to meet the financial needs of people who are overlooked by the formal banking system and create better education, health care and self-employment opportunities.

Branding, advertising and consulting

  1. ^ "Bandhan to Focus on Deposits in Initial Years". NDTV. Retrieved 26 February 2015. 
  2. ^ "Deserving the honour". Business Today. Retrieved 26 February 2015. 
  3. ^ "Deserving the honour". Business Today. Retrieved 26 February 2015. 
  4. ^ "Meet Bandhan CMD Chandra Shekhar Ghosh, the man who pipped Birlas and Ambanis for a bank license. Ashok Lahiri has benn appointed as its chairman.". The Economic Times. Retrieved 26 February 2015. 
  5. ^ "Bandhan Bank commences operations with loan book of Rs 10,500 cr". Retrieved 23 August 2015. 
  6. ^ "Bandhan appoints former chief economic adviser Ashok Lahiri as chairman". Retrieved 23 August 2015. 
  7. ^ "We do not, for a change, plan to target the corporate sector for lending". Business Standard. Retrieved 26 February 2015. 
  8. ^ "Chandra Shekhar Ghosh's- Bandhan, banks on building ties with the underprivileged". Forbes India. Retrieved 26 February 2015. 
  9. ^ Today "Bandhan Bank may begin operations by early 2015" . 
  10. ^ "FIS to provide technology services to Bandhan Bank". Financial Express. Retrieved 26 February 2015. 
  11. ^ "Bandhan banking on low-income group & eastern region". The Financial Express. 
  12. ^ "Bandhan Bank gets fund commitment from GIC, IFC". DNA India. Retrieved 26 February 2015. 
  13. ^ "MFIs' portfolio reaches historic high of Rs 35k cr". Business Standard. Retrieved 26 February 2015. 
  14. ^ "IFC picks up close to 11% in MFI Bandhan Financial Services for Rs 135 crore". The Economic Times. Retrieved 26 February 2015. 

References

  • Official website

External links

The major investors in the parent company of Bandhan Bank are International Finance Corporation (IFC), Singapore Sovereign Wealth Fund GIC,[12] Financial Inclusion Trust, North Eastern Financial Inclusion Trust, Bandhan Employees Welfare Trust and Small Industries Development Bank of India (SIDBI).[13][14]

Investors

Aon Hewitt, a leading human resource consulting firm, has been hired to build and implement new human resources management and compensation Strategy for the existing and new employees. Bandhan Bank hired 400 skilled bankers and 3,000 freshers before operation.[11]

Human resources management

The entire information technology (IT) function including the fully integrated banking, payment platform and backend support is outsourced by the bank to US-based Fidelity Information Services (FIS). As Bandhan’s technology partner, FIS will provide totally outsourced delivery model, encompassing core banking, channel solutions, treasury, trade finance and an entire suite of payments services that includes switching, debit card management and interbank network connectivity.[9][10]

IT and operation support

[8]

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