Bandhan Bank
|
"Aapka Bhala, Sabki Bhalai" | |
| Private | |
| Industry | Banking, Financial services |
| Founded | 2001 |
| Founders | Chandra Shekhar Ghosh |
| 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 |
bandhanbank |
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 24 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]
Management
Bandhan Bank has Dr. Ashok Lahiri as Chairman. He has been the chief economic adviser to Government of India earlier. While the founder, Chandra Shekhar Ghosh is the 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
Ogilvy & Mather has built the new branding and crossover strategy of Bandhan from micro-finance to mainstream banking. Ogilvy has also improvised the interior styles of Bandhan . Madison Communications has finalised the advertising strategy of the bank.[7] Consulting firm Deloitte Touche Tohmatsu, India was roped to implement the various transformation process in the organisation.[8]
IT and operation support
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]
Human resources management
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]
Investors
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]
External links
References
- ↑ "Bandhan to Focus on Deposits in Initial Years". NDTV. Retrieved 26 February 2015.
- ↑ "Deserving the honour". Business Today. Retrieved 26 February 2015.
- ↑ "Deserving the honour". Business Today. Retrieved 26 February 2015.
- ↑ "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.
- ↑ "Bandhan Bank commences operations with loan book of Rs 10,500 cr". Retrieved 23 August 2015.
- ↑ "Bandhan appoints former chief economic adviser Ashok Lahiri as chairman". Retrieved 23 August 2015.
- ↑ "We do not, for a change, plan to target the corporate sector for lending". Business Standard. Retrieved 26 February 2015.
- ↑ "Chandra Shekhar Ghosh's- Bandhan, banks on building ties with the underprivileged". Forbes India. Retrieved 26 February 2015.
- ↑ "Bandhan Bank may begin operations by early 2015".
- ↑ "FIS to provide technology services to Bandhan Bank". Financial Express. Retrieved 26 February 2015.
- ↑ "Bandhan banking on low-income group & eastern region". The Financial Express. Retrieved 26 February 2015.
- ↑ "Bandhan Bank gets fund commitment from GIC, IFC". DNA India. Retrieved 26 February 2015.
- ↑ "MFIs' portfolio reaches historic high of Rs 35k cr". Business Standard. Retrieved 26 February 2015.
- ↑ "IFC picks up close to 11% in MFI Bandhan Financial Services for Rs 135 crore". The Economic Times. Retrieved 26 February 2015.
