Bandhan was set up in 2001 as a not-for-profit entity with the objective of financial inclusion and women empowerment through sustainable livelihood creation. It started its microfinance operations from Bagnan, a small village, about 60 km from Kolkata. The model followed for delivery of microfinance services was individual lending through group formation. Bandhan focused on serving underbanked and underpenetrated markets.[2]
In 2006, Bandhan acquired a Non-Banking Financial Company (NBFC) and created Bandhan Financial Services Private Limited (BFSPL) to scale up its microfinance activities. In 2010, it became the largest microfinance institution (MFI) in the country.[3]
In April 2014, Bandhan received an in-principle approval from the Reserve Bank of India (RBI).[4] On June 17, 2015, RBI granted the banking licence to Bandhan, making it the first-ever microfinance institution to become a universal bank in India.[5]
On 27 March 2018, Bandhan Bank was listed on the bourses and became the 8th largest bank in India by market capital, on the day of listing itself.[7]
Merger
In October 2019, Bandhan Bank acquired GRUH Finance Limited,[8] a Housing Development Finance Corporation Limited backed housing finance company in the share-swap deal by way of scheme of amalgamation, in order to venture into the affordable housing finance.[9]
Investors
Bandhan Bank is an associate of Bandhan Financial Holdings Limited (BFHL)[10] which is holding 39.99% of stake in the Bank as on December 31, 2021. Further, BFHL is a wholly owned subsidiary of Bandhan Financial Services Limited (BFSL). Other major shareholders of the Bank as on December 31, 2021, are Housing Development Finance Corporation Limited (9.89%), and Caladium Investment Pte. Limited (7.79%).[11]
Operations
Bandhan Bank is present in 35 out of 36 states and union territories of India, with 6,297 banking outlets and 3.50+ crore customers.[12][13] Having received the universal banking licence from the Reserve Bank of India, Bandhan Bank started operations on August 23, 2015, with 501 branches, 50 ATMs and 2,022 Banking Units (BUs). The Bank has mobilised deposits of ₹1,42,510 crore and its total advances stand at ₹1,30,649 crore as of September 30, 2024.[12]
Bandhan Bank is focused on inclusive banking and reaches out to the unbanked and under-banked segments of the country, with 73% of its branches situated in rural and semi-urban areas.[14]
Products and services
The Bank's products and services ranges from savings to current accounts, from fixed deposits to credit cards, from home loans to personal loans, from insurance to mutual funds, and more.[15]
Listing and shareholding
The equity shares of Bandhan Bank are listed on indian stock market BSE and the NSE.[16] The IPO of the Bank oversubscribed by almost 15 times at the end of the three-day long issue.[17][18] On its stock exchange debut (March 27, 2018), the equity opened at ₹487.33 on the National Stock Exchange and closed at ₹476.85; 27% over its issue price of ₹375.[11]
