Bandhan completes final preparations to launch its banking operations

Banking license holder Bandhan Financial Services is awaiting the final approval from the RBI to launch its banking operations towards the end of this month.

Managing Director of India’s largest MFI, Chandra Shekhar Ghosh, announced that the Rs 500 crore startup capital required for banking operations will be provided by three official, but diverse lenders- Singapore government’s Sovereign Wealth Fund- GIC, World Bank affiliate – IFC and small  industries lender -SIDBI.

Last year, Bandhan has awarded an unexpected, but deserving baking license along with infrastructure lender IDFC, from a large number of applicants that included many corporate giants and big NBFCs.

IDFC is on the way to complete procedural formalities to enter into the banking business and is expected to start its operations by October this year. The infrastructure lender has a loan size of Rs 55000-60000 crores at present and nearly 50000 crores will be converted into the new bank.

CS Ghosh who left a job in an NGO, to start Bandhan in early last decade has announced that his MFI has achieved a loan growth of 57 percent last year and total lending is near to Rs 10000 crores. He was speaking at an AMFI-WB banking summit in Calcutta.

The North East concentrated Bandhan is the largest MFI in the country with nearly 66 lakh customers. Anticipating the banking operations, Bandhan plans to install nearly 250 ATMs in urban and metro centres.