Wednesday, 16 April 2014

Bandhan: A microfinance group that beat corporates to a bank license

Dear readers, here we are poting a post on India's newly minted banking institutions. Know more about it.

The Reserve Bank of India granted "in-principle" approval for banking licences to infrastructure financing firm IDFC and Bandhan from among 25 applicants, including corporate heavyweights ADAG Group, Aditya Birla Group and Bajaj Group.

The RBI said it assessed the quantitative and qualitative aspects of the applicants, including their financial statements, 10-year track record of running businesses, proposed business model for the bank and demonstrated capabilities for running a bank, plan for expanding inclusion, and culture of compliance and integrity.

Bandhan was the only microfinance institution that applied for a banking licence.


Organisational Background

Bandhan (meaning togetherness) was born in 2001 under the leadership of Mr. Chandra Shekhar Ghosh, a Senior Ashoka Fellow. The main thrust of Bandhan is to work with women who are socially disadvantaged and economically exploited. Bandhan works for their social upliftment and economic emancipation.




To achieve the above objective, Bandhan is basically engaged in the delivery of microfinance services to the poor women.

Bandhan has been engaged in the delivery of microfinance service for the last 12 years. The model followed is individual lending through group formation.

All microfinance activities are carried under Bandhan Financial Services Private Limited (BFSPL), incorporated under the Companies Act, 1956 and also registered as a Non Banking Financial Company (NBFC) with the Reserve Bank of India (RBI).

The microfinance operations started from Bagnan, a small village which is 60 kms away from the city of Kolkata. In 12 years, Bandhan has travelled a wide geography of 22 States and Union Territories with special focus on eastern and underdeveloped states of North East.

Bandhan’s commitment towards triple bottom-line values is strongly asserted by its intervention in development activities. It believes that Microfinance is not the last word for development of the poor.

Aspiring to holistic development of the poor, Bandhan offers development activities in crucial fields of education, health, unemployment, livelihood and the like through its not-for profit entity. Besides, Bandhan also has a program exclusively for the hard core poor (generally believed to be bypassed by microfinance)

Here's all you need to know about one of India's newly minted banking institutions:

 • Bandhan Financial Services, the first microfinance institution in the country to win a bank licence, is also one of the youngest entities to be allowed to enter the banking space.

• The Economic Times reports that Bandhan is the biggest microfinance company in India, with a presence in 22 states. It is growing at 25-35 percent.

• Set up in 2001 by Chandra Shekhar Ghosh, Kolkata-based Bandhan began with a focus on working with "socially disadvantaged and economically exploited women," according to its website.

• Bandhan wants to reach 1 crore poor households by 2020, ET reports.

• In 2007, Forbes magazine ranked it #2 in its first ever list of the global top 50 microfinance institutions.

• According to ET, Ghosh will be the first private entrepreneur from Kolkata to set up a bank, post Independence
.


• With 2,016 branches across 22 states and Union territories, Bandhan had over 52.33 lakh borrowers as of February.

• It disbursed Rs 963 crore of loans in February and has total loans outstanding of Rs 5,704 crore.

• Bandhan's current net worth is Rs 1,100 crore, of which Rs 96 crore is pure equity with a capital adequacy ratio of 21 percent.

• ET estimates that Bandhan will need to keep Rs 1,420 crore as statutory liquidity requirement and Rs 246 crore as cash reserves with the RBI.

• The Business Standard reports that the International Finance Corporation bought an 11 percent stake in Bandhan in 2011 for about Rs 135 crore, with the micro-lender being valued at approximately Rs 1,227 crore.

• Sidbi (Small Industries Development Bank of India) is the only other institutional investor in Bandhan, with a 10 percent stake.

 • According to BS, Ghosh owns 1.8 percent while two trusts, the Financial Inclusion Trust and the North East Financial Inclusion Trust, hold the balance.

• The institution charges 22 percent interest for loans up to Rs 15,000. Ghosh had earlier told BS that, if granted a banking licence, the rates could come down by 6-7 percent.

• Bandhan said the award of the banking licence was a recognition of the microfinance sector and their hard work to reach unbanked areas and provide financial services. "We will be able to offer full-fledged banking services to the poor people," Bandhan Chairman and Managing Director Ghosh said.

• Bandhan has loan schemes such as Samriddhi for the MSME sector and Sushiksha for education, among others. It also runs the Bandhan School of Development Management.








26 comments:

vikky said...

nice data, thanx BA to boost up gk

prateek said...

Congrats to bandhan group.this time to celebrate .
This is proved ki fm chidambaram ki nhi chali nhi to sbse bde corporates ko hi milta ye.
Thanx to rbi governer given it without partiality

Arvind said...

I have obc certificate of state submitted at The time of interview. The checker did not raise any objection theen. But I came to know that while joining bank we have to submit obc certificate of government of India. Now what I will do ? Suggest me

PRABHAT said...

even i have OBC certificate of the state, Govt of India ka banana zaruri hai kya???

Somnath Sharma said...

document verification me provisional degree chal jayegi kya??

Ravi Pargar said...

Hello Friends,
Jaat student from Haryana Should fill OBC or General in SBI PO form ...??

IBPS KA BAAP said...

When will IBPS declare NOTIFICATION of 2014 means RRB-3&Po-4????????????????

kiran said...

Postal Assistant 2014 schedule out for Haryana and Karnataka










Postal Circles





Exam Date



Exam Time






Haryana (17), Karnataka (21)








27-Apr






02:00PM to 04:00PM

siya shah said...

Hey, anyone selected as indian bank po with aggregate graduation percentage less than 60% ? plz reply....

ravi sanapala said...

when will come RRB notificarion...3

chanchal kumar verma said...

most probably in july

chanchal kumar verma said...

most probably in july and aug respectively

Rehan said...

can any one tell me if by fault someone has entered wrong date of birth while filling sbi po form is that date is edited after submission of fees and if it is not what kind of problem may occur in future like in interview plz if any one has idea about this inform me.

vimal gupta said...

i hv 126 in rrb po n 123 in rrb clerk in mp.any chance for selection .pls replyl

Thatigutla DEVADAS REDDY said...

May be creat prblm. But I think u have to carry affidavit in interview.

Rehan said...

but its matter of three months difference actual date of birth is 10-10-1991 but by fault it was typed as 10-06-1991

anxious said...

yup....but still try to comply with the original if you can get it by this meantime

Mayank said...

Very good chance in rrb po

Mayank said...

Now u have only one option i.e. Affidavit

Mayank said...

Haan ji bilkul chal jayegi or abhi time hai to original nikalwa lo

Supreet Arora said...

Hi I am 30..can I apply any government job..I hv work experience of 8 years in private sector into financial services sector. .can anyone suggest any government job for me..thanks

ibps said...

Nahi chalegi

biswaji said...

Mera ibps rrb po 118 and clerk mein 120 in sc odisha any chance..pls help me

ABHISHEK UPADHYAY said...

yes Mr. Supreet , if you want to go to government gob , you can prepare for it. but main thing is this you can't prepare in banking exams. because the age you have been cross this Age criteria , because in banking exams mainly in ibps po & clerk the age criteria is 20 to 28 years and in Sbi age criteria is 21 to 30 years. so i can suggest you that you can prepare for civil services. because you can eligible for this , if you interested in government gobs, otherwise you have a good opportunity in private jobs because you have a experience of 8 years infact , this gives benefit you. ALL THE BEST FOR YOU.

K M Chary said...

If once entered the details there is no chance to be modified.

vikky said...

Mr.. supreet upadhyay ji is right but if u belongs to obc cat. then u get age relaxation of 5 years.

Post a Comment