Bandhan Bank Ltd. is an Indian private sector bank headquartered in Kolkata,West Bengal. Commencing operations as a universal bank on 23 August 2015, it evolved from its origin as non-governmental oraganization (NGO) established in 2001 and a subsequent. The bank's core focus is inclusive banking and serving unbanked and under-banked populations across India.[3]
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.[4]
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.[5]
In April 2014, Bandhan received an in-principle approval from the Reserve Bank of India (RBI) for a bank license.[6] On 17 June 2015, RBI granted the banking licence to Bandhan, making it the first microfinance institution to become a universal bank in India.[7]
Bandhan Bank commenced operations on 23 August 2015. The then Union Finance Minister, Arun Jaitley, inaugurated the Bank in Kolkata.[8] 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).
In September 2018, the Reserve Bank of India (RBI) barred Bandhan Bank from opening new branches without prior approval and froze the salary of its MD & CEO, Chandra Shekar Ghosh, after the bank failed to reduce its promoter shareholding to the mandated 40% within three years of starting operations.[AI-generated?][9]
In 2019, Bandhan Bank merged GRUH Finance into its operations, expanding into affordable housing finance and helping lower promoter shareholding to meet RBI ownership regulations.[10]
Operations
Bandhan Bank is present in 35 out of 36 states and union territories of India, with nearly 6,400 banking outlets[11][12] After obtaining the universal banking licence from the Reserve Bank of India, Bandhan Bank started operations on 23 August 2015, with 501 branches, 50 ATMs and 2,022 Banking Units (BUs). The Bank has mobilised deposits of ₹1,64,886 crore and its total advances stand at ₹1,55,555 crore as of 30 June 2026.[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]
Listing and shareholding
The equity shares of Bandhan Bank are listed on BSE and the NSE.[14][15][16]
Bandhan Bank is an associate of Bandhan Financial Holdings Limited (BFHL)[17] which holds a 39.99% stake in the bank as on 31 December 2021. Further, BFHL is a wholly owned subsidiary of Bandhan Financial Services Limited (BFSL). Other major shareholders of the Bank as on 31 December 2021, are Housing Development Finance Corporation Limited (9.89%), and Caladium Investment Pte. Limited (7.79%).[18]
| Shareholders as on 31 March 2022 | Shareholding (%)[18] |
|---|---|
| Promoter & Promoter Group* (BFHL) | 39.99 |
| Foreign Portfolio Investor (FPI) | 34.31 |
| Bodies Corporate | 9.71 |
| Individual Shareholders | 6.16 |
| Qualified Institutional Buyers | 3.91 |
| Others | 5.92 |
See also
References
- ↑ "Quarterly results FY2025-26" (PDF).
- ↑ "Bandhan bank's total business grew by 17%".
- ↑ https://bandhan.bank.in/about-us
- ↑ "Bandhan Bank Ltd". Business Standard India. Retrieved 6 May 2021.
- ↑ "Big Lender Of Small Loans". Business Today. 3 March 2020. Retrieved 4 April 2022.
- ↑ "RBI grants in-principle approval to IDFC, Bandhan for new bank licences". The Economic Times. Retrieved 4 April 2022.
- ↑ "RBI gives nod to bank licences for IDFC, Bandhan". India Today. 2 April 2014. Retrieved 4 April 2022.
- ↑ "Jaitley inaugurates Bandhan Bank in Kolkata". Indiablooms.com. Retrieved 4 April 2022.
- ↑ https://www.thehindu.com/business/rbi-cracks-down-on-bandhan-bank-for-violating-norm/article25074274.ece
- ↑ https://bandhan.bank.in/Our-Story
- 1 2 "Q4 2025-26" (PDF).
- ↑ "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.
- ↑ "Bandhan Bank Investor Presentation Q4 FY2020-21" (PDF).
- ↑ "Shares of Bandhan Bank get listed". Motilal Oswal. Retrieved 27 March 2018.
- ↑ "Bandhan Bank IPO subscribed 14.6 times on last day". Live Mint. Retrieved 20 March 2018.
- ↑ "Bandhan Bank IPO subscribed 14.60 times on final day". Money Control. Retrieved 19 March 2018.
- ↑ "Ownership rules: Promoter dilutes 20.95% stake in Bandhan Bank". The Financial Express. 4 August 2020. Retrieved 14 October 2020.
- 1 2 "Bandhan Shareholding - March 31, 2022" (PDF). Bandhan Bank.
Further reading
- Bandyopadhyay, Tamal (9 June 2016). Bandhan: The Making of a Bank. Penguin Books. p. 304. ISBN 9789386057204.
- Nayak, Sayanee (2017). "Analysing the Sustainability of Private Institutions Contributing towards Financial Inclusion: The Case Study of Bandhan Bank" (PDF). Publishing India.
- Ghosh Dastidar, Surajit (2 November 2018). "Chandra Shekhar Ghosh: founding Bandhan". Emerald Emerging Markets Case Studies. 8 (4). doi:10.1108/EEMCS-09-2017-0234.
- Panchal, Salil (6 November 2020). "Bandhan Bank aims for the big league". Forbes India. Retrieved 19 May 2025.
- Palo, Sasmita (28 April 2023). "Bandhan Bank's Strategic CSR: Building Knowledge and Experience of Rural Microfinance". NHRD Network Journal. 16 (2). doi:10.1177/26314541231159725. eISSN 2631-455X – via Sage Journals.
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