Bandhan Bank

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Bandhan Bank
TypePublic
ISININE545U01014
IndustryFinancial services
Founded2015 (7 years ago) (2015)
FoundersChandra Shekhar Ghosh
HeadquartersKolkata, West Bengal, India
Number of locations
5,626 Banking outlets [1] (2021)
Area served
India
Key people
ProductsBanking, insurance, investment management, mortgage loans, mutual funds
RevenueIncrease ₹146.33 billion (US$1.9 billion) (2021)
Increase ₹68.55 billion (US$900 million) (2021)
Increase ₹22.05 billion (US$290 million) (2021)
Total assetsIncrease ₹1,149.93 billion (US$15 billion) (2021)
Number of employees
55341(2021) [2]
Websitewww.bandhanbank.com Edit this at Wikidata

Bandhan Bank Ltd. is a banking and financial services company, headquartered in Kolkata. Bandhan Bank is present in 34 out of 36 states and union territories of India, with 5,626 banking outlets and more than 2.51 crore customers.[3][4] 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 over ₹84,500 crore and its total advances stand at over ₹87,000 crore as of December 31, 2021.[3]

History[edit]

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. [5]

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.[6]

In April  2014, Bandhan received an in-principle approval from the Reserve Bank of India (RBI).[7] 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. [8]

Bandhan Bank commenced operations on August 23, 2015. The then Union Finance Minister, Late Shri Arun Jaitley, inaugurated the Bank in Kolkata.[9] Its public shareholders then included International Finance Corporation; Caladium Investment Pte Ltd (the sovereign wealth fund of Singapore, an arm of GIC); and Small Industries Development Bank of India (SIDBI).

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.[10]

Operations[edit]

Bandhan Bank through its network of 5,626 banking outlets[3] is spread across metro, urban, semi-urban and rural India. The key focus areas are micro-entrepreneurs, MSME segment, housing finance and retail assets. It is interesting to note that 84.5% of the Bank's deposits are in the retail segment, thus, granular in nature.

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. [11]

Philosophy[edit]

Bandhan Bank is amongst India’s youngest universal bank. It is driven by the philosophy of 'Aapka Bhala, Sabki Bhalai'.[12] Bandhan Bank’s objective is to be one of the critical enablers in broadening and deepening financial services for all.

Mission and vision[edit]

Bandhan Bank’s mission is to provide its customers accessible, simple, cost-effective and innovative financial solutions in a courteous and responsible manner.

It aims to be a world-class bank with convenient and affordable financial solutions for all.[13]

Products and services[edit]

Bandhan Bank offers a range of diversified products and services for wholesome banking needs of customers across geographies. 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.[14]

Merger[edit]

In October 2019, Bandhan Bank acquired GRUH Finance Limited,[15] 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. [16]

Investors[edit]

Bandhan Bank is an associate of Bandhan Financial Holdings Limited (BFHL)[17] 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%). [18]

Listing and shareholding[edit]

The equity shares of Bandhan Bank are listed on the BSE Limited and the National Stock Exchange of India Limited.[19] The IPO of the Bank oversubscribed by almost 15 times at the end of the three-day long issue.[20][21] 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. [18]

Shareholders as on December 31, 2021 Shareholding (%)[18]
Promoter & Promoter Group* (BFHL) 39.99
Foreign Portfolio Investor (FPI) 34.60
Bodies Corporate 10.52
Individual Shareholders 7.38
Qualified Institutional Buyers 3.99
Others 3.52

*Other promoters i.e. Bandhan Financial Services Limited, North East Financial Inclusion Trust, Financial Inclusion Trust, and Bandhan Konnagar, the Promoter Group, are not holding any equity shares in the Bank.

Beyond Banking[22][edit]

Bandhan Bank runs multiple holistic programmes through its CSR implementing agency. The development programmes have been devised to bring about far-reaching effects in the fields of education, health, livelihood promotion, enterprise development, financial literacy, skill development and employment generation. Programmes like, Targeting the Hardcore Poor (THP) Programme, Bandhan Education Programme (BEP), Bandhan Health Programme (BHP), Employing the Unemployed Programme (EUP), and Bandhan Financial Literacy Programme (BFLP) are a part of its CSR initiatives. [23]

Awards and accolades[edit]

Over the years, Bandhan Bank has won the following awards -

  • ‘Best Growth Performance – Bank’ in July 2021 at Dun & Bradstreet’s Corporate Awards for India’s Top 500 Companies 2021 by Dun & Bradstreet.[24]
  • 'Best Small Bank' in March 2020 by Business Today Magazine. [25]
  • ‘Fastest Growing Company & Excellence in Business Performance’ in February 2020 at The Economic Times Bengal Corporate Awards by The Economic Times. [26]
  • ‘Best Indian Banking & Financial Institution’ in January 2020 at the Times Business Awards by Times Business. [27]
  • ‘Emerging Company of the Year’ in September 2019 at the Economic Times Awards for Corporate Excellence by The Economic Times.[28]
  • ‘Best Bank & Fastest Growing Bank’ in May 2019 at the Magna Awards by Businessworld. [29]
  • ‘Noteworthy Lender to the MSE – Private Sector Bank’ in January 2019 at the 'SIDBI ET MSE AWARDS' by SIDBI.[30]
  • 'Best Bank of the Year’ in November 2018 at the Wealth Creator Awards by Moneycontrol.[31]
  • 'Best Performing Bank in terms of Aadhaar generation and update’ in October 2018 at the Aadhaar Excellence Awards by UIDAI, Govt. of India.[32]
  • ‘Entrepreneur with Social Impact’ in July 2018 at the CNBC-AWAAZ CEO Awards by Chhattisgarh Govt. [33]
  • 'MFIN Microfinance Award – In pursuit of Excellence' in May 2018 by MFIN Awards. [34]
  • 'Changemaker – Financial Transformation’ in March 2018 at The Hindu Business Line Changemakers Award by The Hindu. [35]
  • ‘Best Private Sector Bank – Government Scheme Participation’ in August 2017 at the Dun & Bradstreet Banking Awards by Dun & Bradstreet. [36]
  • 'Special Initiative Award’ in September 2016 at the FE India's Best Banks Awards by Financial Express. [37]
  • 'Indian of the Year' in June 2016 by CNN-News 18. [38]

See also[edit]

References[edit]

  1. ^ "Quarterly results FY2021-22" (PDF).
  2. ^ "Annual report FY 2017–18" (PDF).
  3. ^ a b c "Q3 2021-22" (PDF). Archived (PDF) from the original on 21 January 2022.
  4. ^ "Bandhan Bank and 5 other stocks that analysts say can offer solid short-term returns - Money-making Ideas". The Economic Times. Retrieved 14 April 2022.
  5. ^ "Bandhan Bank Ltd". Business Standard India. Retrieved 6 May 2021.
  6. ^ "Big Lender Of Small Loans". Business Today. Retrieved 4 April 2022.
  7. ^ "RBI grants in-principle approval to IDFC, Bandhan for new bank licences". The Economic Times. Retrieved 4 April 2022.
  8. ^ "RBI gives nod to bank licences for IDFC, Bandhan". India Today. 2 April 2014. Retrieved 4 April 2022.
  9. ^ "Jaitley inaugurates Bandhan Bank in Kolkata". Indiablooms.com. Retrieved 4 April 2022.
  10. ^ "8th largest bank in India". Economics Times. Retrieved 28 March 2018.
  11. ^ "Bandhan Bank Investor Presentation Q4 FY2020-21" (PDF).
  12. ^ www.ETBrandEquity.com. "Bandhan Bank promises its users 'aapka bhala, sabki bhalai' in new campaign - ET BrandEquity". ETBrandEquity.com. Retrieved 13 April 2022.
  13. ^ "Our Philosophy | Bandhan bank". bandhanbank.com. Retrieved 13 April 2022.
  14. ^ "Bandhan Bank Annual Report FY2020-21" (PDF).
  15. ^ "Bandhan Bank gets shareholders' nod to merge Gruh Finance – Times of India". The Times of India. Retrieved 1 August 2019.
  16. ^ "Bandhan Bank gets CCI approval to acquire Gruh Finance". moneycontrol. Retrieved 17 April 2019.
  17. ^ "Ownership rules: Promoter dilutes 20.95% stake in Bandhan Bank". The Financial Express. 4 August 2020. Retrieved 14 October 2020.
  18. ^ a b c "Bandhan shareholding - December 31, 2021" (PDF).
  19. ^ "Shares of Bandhan Bank get listed". Motilal Oswal. Retrieved 27 March 2018.
  20. ^ "Bandhan Bank IPO subscribed 14.6 times on last day". Live Mint. Retrieved 20 March 2018.
  21. ^ "Bandhan Bank IPO subscribed 14.60 times on final day". Money Control. Retrieved 19 March 2018.
  22. ^ "beyond banking | Bandhan bank". bandhanbank.com. Retrieved 18 April 2022.
  23. ^ "beyond banking | Bandhan bank". bandhanbank.com. Retrieved 18 April 2022.
  24. ^ "'India's Top Companies' 2021: Dun & Bradstreet". Marketing Mind. 23 July 2021. Retrieved 18 April 2022.
  25. ^ "Big Lender Of Small Loans". Business Today. Retrieved 18 April 2022.
  26. ^ "BSE India - Annual report" (PDF). BSE India- Annual report.
  27. ^ "Bandhan Bank - Annual financial results" (PDF).
  28. ^ "Economic Times - Emerging company of the year".
  29. ^ "Bandhan Bank - Investor Presentation FY2019-20" (PDF).
  30. ^ "SIDBI ET India - Awards" (PDF).
  31. ^ "Moneycontrol wealth creator awards 2018".
  32. ^ "Bandhan Bank Investor Presentation Q2 FY2018-19" (PDF).
  33. ^ "CNBC Awaaz CEO awards 2018 In Association with Chhattisgarh Government concludes on a successful note". MediaNews4U. 14 July 2018. Retrieved 18 April 2022.
  34. ^ "MFIN India - The journey of a decade" (PDF).
  35. ^ "The Hindu BusinessLine Changemaker Awards celebrate catalysts of change - Exchange4media". Indian Advertising Media & Marketing News – exchange4media. Retrieved 18 April 2022.
  36. ^ "BSE India - Annual Report Bandhan Bank FY2017-18" (PDF).
  37. ^ "FE Best Banks Awards: Bandhan Financial wins special initiative award". Financialexpress. Retrieved 18 April 2022.
  38. ^ "The People of Chennai are CNN News18's Indian of the Year". Hindustan Times. 10 June 2016. Retrieved 18 April 2022.

External links[edit]

Retrieved from "https://en.wikipedia.org/w/index.php?title=Bandhan_Bank&oldid=1084595596"