In April 2014, the Reserve Bank of India (RBI) granted banking licences to only two non-corporate entities – Bandhan and IDFC – after a long gap of 10 years. Before that, the RBI had issued banking licence in 2004, giving birth to Kotak Mahindra Bank and YES Bank.
At the time of being granted banking licence, the Kolkata-based Bandhan had been playing a major role in extending micro-finances and catering mainly to the rural financial needs. Whereas, by the time it got banking licence, IDFC had already established itself as a big name in the infrastructure lending sector. However, these two were not big corporate houses.
Since its formation as a full-fledged bank, Bandhan has witnessed a robust growth both in terms of amount of deposits and number of new customers. According to the bank, since its inception, Bandhan has reached the each nook and cranny of the country.
“2017 has been a year of expansion for us; we have reached out to every corner of the 33 states and union territories of India,” Bandhan’s chief executive officer and managing director Chandra Shekhar Ghosh said in a new-year greeting.
Launched on 23 August 2015, Bandhan has rapidly expanded its branch network throughout India. The bank now has 887 branches and is now serving 12 million customers and catering to their financial needs with the help of 27,000 employees, according to Ghosh who also thanks customers for reposing trust in Bandhan.
According to Ghosh, the bank has deposits worth Rs 24,600 crore and loan book stands at Rs 24, 350 crore. It also has a mobile banking app, mBandhan.
— Bandhan Bank (@bandhanbank_in) December 31, 2017
“Besides regular banking services, we have introduced third-party products like general insurance, life insurance and mutual funds to provide a 360 degree convenient service to all of our esteemed customers,” Ghosh says.
However, it is to be noted that what helped the bank get the licence was its rural exposure as a hugely successful micro-finance company.
It is widely believed that the rural background of Bandhan caught the central bank’s eyes as it wanted to end the banking deprivation widespread in villages. This also goes with the government's financial inclusion initiative.
RBI had also indicated its aim was to include more number of rural populace in India’s banking sector, a concept that was later popularised as ‘financial inclusion’ by Narendra Modi after he took over as prime minister in May 2014.
Stock market debut
On Monday, the private sector bank filed a draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) with an aim to raise Rs 2,500 crore. The bank is selling approximately 12 crore shares with face value of Rs 10 each.
"Bandhan Bank Ltd has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering of up to 11,92,80,494 equity shares of face value of Rs 10 each," the lender said in a statement.
The IPO consists of a fresh issue of up to 9,76,63,910 equity shares and an offer for sale of up to 1,40,50,780 scrips by International Finance Corporation (IFC) and up to 75,65,804 shares by IFC FIG Investment Company. Read the full PTI report here.
Updated Date: Jan 02, 2018 14:31 PM