Bandhan Bank

Last updated

Bandhan Bank Limited
Company type Public
ISIN INE545U01014
Industry Financial services
Founded23 August 2015;9 years ago (2015-08-23)
Founders Chandra Shekhar Ghosh
Headquarters Kolkata, West Bengal, India
Number of locations
1703 branches [1]  (30 September 2024)
Area served
India
Key people
  • Dr. Anup Kumar Sinha
    (Chairman)
  • Partha Pratim Sengupta
    (MD & CEO)
Products
RevenueIncrease2.svg₹21,034 crore (US$2.5 billion) (2024)
Decrease2.svg₹6,639 crore (US$780 million) (2024)
Increase2.svg₹2,230 crore (US$260 million) (2024)
Total assets Increase2.svg₹177,842 crore (US$21 billion) (2024)
Number of employees
79,900+ (2024)
Website www.bandhanbank.com OOjs UI icon edit-ltr-progressive.svg

Bandhan Bank Ltd.is a banking and financial services company, headquartered in Kolkata.

Contents

History

Bandhan was set up in 2001 as a not-for-profit entity with the objective of financial inclusion and women empowerment. 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) for a bank license. [4] On June 17, 2015, RBI granted the banking licence to Bandhan, making it the first microfinance institution to become a universal bank in India. [5]

Bandhan Bank commenced operations on August 23, 2015. The then Union Finance Minister, Arun Jaitley, inaugurated the Bank in Kolkata. [6] 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 capitalisation, on the day of its listing. [7] Its shares opened at ₹487.33 on the National Stock Exchange and closed at ₹476.85; 27% over its issue price of ₹375. [8]

Merger

In October 2019, Bandhan Bank acquired GRUH Finance Limited, [9] a housing finance company, in a share-swap deal. [10]

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. [11] [12] After obtaining 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. [11]

Bandhan Bank is focused on inclusive banking and serves the unbanked and under-banked segments of the country, with 73% of its branches situated in rural and semi-urban areas. [13]

Products and services

The bank's products and services include savings and current accounts, fixed deposits, credit cards, home loans, personal loans, insurance and mutual funds. [14]

Listing and shareholding

The equity shares of Bandhan Bank are listed on BSE and the NSE. [15] [16] [17]

Bandhan Bank is an associate of Bandhan Financial Holdings Limited (BFHL) [18] which holds a 39.99% 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%). [8]

Shareholders as on March 31, 2022Shareholding (%) [8]
Promoter & Promoter Group* (BFHL)39.99
Foreign Portfolio Investor (FPI)34.31
Bodies Corporate9.71
Individual Shareholders6.16
Qualified Institutional Buyers3.91
Others5.92

See also

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References

  1. ↑ "Quarterly results FY2024-25" (PDF).
  2. ↑ "Bandhan Bank Ltd". Business Standard India. Retrieved 6 May 2021.
  3. ↑ "Big Lender Of Small Loans". Business Today. 3 March 2020. Retrieved 4 April 2022.
  4. ↑ "RBI grants in-principle approval to IDFC, Bandhan for new bank licences". The Economic Times. Retrieved 4 April 2022.
  5. ↑ "RBI gives nod to bank licences for IDFC, Bandhan". India Today. 2 April 2014. Retrieved 4 April 2022.
  6. ↑ "Jaitley inaugurates Bandhan Bank in Kolkata". Indiablooms.com. Retrieved 4 April 2022.
  7. ↑ "8th largest bank in India". Economics Times. Retrieved 28 March 2018.
  8. 1 2 3 "Bandhan Shareholding - March 31, 2022" (PDF). Bandhan Bank.
  9. ↑ "Bandhan Bank gets shareholders' nod to merge Gruh Finance – Times of India". The Times of India. 30 July 2019. Retrieved 1 August 2019.
  10. ↑ "Bandhan Bank gets CCI approval to acquire Gruh Finance". moneycontrol. Retrieved 17 April 2019.
  11. 1 2 "Q2 2024-25" (PDF).
  12. ↑ "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.
  13. ↑ "Bandhan Bank Investor Presentation Q4 FY2020-21" (PDF).
  14. ↑ "Bandhan Bank Annual Report FY2020-21" (PDF).
  15. ↑ "Shares of Bandhan Bank get listed". Motilal Oswal. Retrieved 27 March 2018.
  16. ↑ "Bandhan Bank IPO subscribed 14.6 times on last day". Live Mint. Retrieved 20 March 2018.
  17. ↑ "Bandhan Bank IPO subscribed 14.60 times on final day". Money Control. Retrieved 19 March 2018.
  18. ↑ "Ownership rules: Promoter dilutes 20.95% stake in Bandhan Bank". The Financial Express. 4 August 2020. Retrieved 14 October 2020.

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