Bandhan Bank Limited was incorporated on 23rd December 2014 as a wholly-owned subsidiary of Bandhan Financial Holdings Limited. Bandhan received the in-principle approval of the Reserve Bank of India (RBI) for setting up a universal bank in April 2014; the banking regulator gave its final nod in June 2015. Incidentally, Kolkata-headquartered Bandhan is the first bank to be set up in eastern part of India after Independence. Bandhan Financial Holdings is owned by Bandhan Financial Services Limited (BFSL), the largest micro finance organization in India. Its public shareholders include International Finance Corporation (IFC), Small Industries Development Bank of India (SIDBI), Caladium Investment Pte. Ltd. (a company managed by GIC Special Investments Private Limited), Bandhan Employees Welfare Trust, and a few individuals. The RBI licensing norms stipulate that a new bank must have a ₹ 500 crore capital. Bandhan Bank starts with a capital base of ₹ 2,570 crore and this will soon rise to ₹ 3,334 crore as on March 31, 2016.This translates into more than 29.01% capital to risk weighted assets ratio or CAR for the new bank, signifying its robustness.

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CASE STUDY ON THE SUCCESSFUL TRANSFORMATION OF
BANDHAN BANKS FROM BANDHAN FINANCIAL SERVICES
LIMITED
Varun Kesavan, Research Scholar, Palakkad. Email Id – varunkesavan@yahoo.com
INTRODUCTION
Bandhan Bank Limited was incorporated on 23rd December 2014 as a wholly-owned
subsidiary of Bandhan Financial Holdings Limited. Bandhan received the in-principle
approval of the Reserve Bank of India (RBI) for setting up a universal bank in April 2014; the
banking regulator gave its final nod in June 2015. Incidentally, Kolkata-headquartered
Bandhan is the first bank to be set up in eastern part of India after Independence.
Bandhan Financial Holdings is owned by Bandhan Financial Services Limited (BFSL), the
largest micro finance organization in India. Its public shareholders include International
Finance Corporation (IFC), Small Industries Development Bank of India (SIDBI), Caladium
Investment Pte. Ltd. (a company managed by GIC Special Investments Private Limited),
Bandhan Employees Welfare Trust, and a few individuals.
The RBI licensing norms stipulate that a new bank must have a ₹ 500 crore capital. Bandhan
Bank starts with a capital base of ₹ 2,570 crore and this will soon rise to ₹ 3,334 crore as on
March 31, 2016.This translates into more than 29.01% capital to risk weighted assets ratio or
CAR for the new bank, signifying its robustness.

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HISTORY OF BANDHAN BANK
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 13 years. The model followed is individual lending
through group formation. All microfinance activities are carried under Bandhan
Financial Services Limited (BFSL), 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 13 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). Over a short span of 13 years
of operation, Bandhan has received various accolades for the efforts it is taking
towards women empowerment and poverty alleviation. These awards are not just
mere awards but more of a motivation for the entire team to march ahead towards

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achieving its mission and vision. Bandhan takes this opportunity to thank all those
who have been associated with Bandhan and have supported our endeavors in
whatever way possible.
Bandhan Bank is driven by a constant desire to serve better. Bandhan Bank started
with 501 branches, 50 ATMs and 2,022 Door step Service Centres (DSCs) on day
one. Presently, Bandhan Bank has 3,550 touch points pan India consisting of 832
bank branches, 2,437 Doorstep Service Centres (DSCs) and 281 ATMs, serving
more than 10 million customers.
The bank has mobilized deposits more than Rs. 22,000 crore and its outstanding
loan book is Rs. 22,900 crore. Bandhan Bank has a team of nearly 23,750
employees on roll.
The Kolkata-headquartered bank has two divisions -- general banking and micro
banking, offering a suite of retail financial solutions, including a variety of savings
and loan products. Currently, the savings bank account interest rate is 6% for
balance above Rs.1 lakh and 4.25% for balance up to Rs.1 lakh. For term deposits,
the maximum interest rate offered is 7.70 % for one year with an additional 0.5% for
senior citizens.

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Bandhan Bank seeks to offer its world-class banking products and services to urban,
semi-urban and rural customers alike. It is a bank for all but the focus remains
unchanged to meet the financial needs of people who are overlooked by the formal
banking system and create better education, health care and self-employment
opportunities. In sync with the philosophy of , ‘Aapka Bhala, Sabki Bhalai’ and
keeping financial inclusion at the heart of it, Bandhan is committed to provide a host
of products and services, competitively on a par with India’s top private and state-
owned banks.
The success of the organization is measured by the million lives it has
touched and the communities that have blossomed with its tireless
efforts. Simply put, when you choose to bank with Bandhan, you are
choosing to be instrumental in the nation’s larger growth story.
BANDHAN’S PHILOSOPHY
INSPIRATION
A poverty-free world through empowerment of the poor
MISSION
‘To provide our customers accessible, simple, cost-effective and innovative financial
solutions in a courteous and responsible manner. To create value for all
stakeholders through a committed team, robust policies and superior systems and
technology’.

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VALUES
Reflecting in our work and in the behaviour of each and every team member, our
values CREATE strong principles in us.
C - Cost effective and simple
R - Respect for all
E - Exemplary governance
A - Accountability, professionalism and discipline
T - Transparency and integrity
E - Effective team work and commitment
VISION
‘To be a world class bank for convenient and affordable financial solutions to all, in
an inclusive and sustainable manner’.

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PRODUCTS& SERVICES
OF BANDHAN BANK
ACCOUNTS LOANS DEPOSITS
SAVINGSACCOUNT
 PREMIUM SAVINGS ACCOUNT
 STANDARD SAVINGS ACCOUNT
 SPECIAL SAVINGS ACCOUNT
 SANCHAY SAVINGS ACCOUNT
 ADVANTAGE SAVINGS ACCOUNT
CURRENT ACCOUNT
 BIZ PREMIUM CURRENT ACCOUNT
 BIZ STANDARD CURRENT ACCOUNT
 BIZ SAMRUDDHI CURRENT
ACCOUNT
 BIZ ADVANTAGE CURRENT
ACCOUNT
RETAIL LOANS
 HOME LOANS
 TWO – WHEELER LOANS
 LOAN AGAINST PROPERTY
 LOAN AGAINST TERM
DEPOSITS.
MSME LOANS
 SAMRIDDHI BUSINESS LOANS
 COMMERCIAL VEHICLE LOANS
 TERM LOANS
 EQUIPMENT LOANS
 WORKING CAPITAL LOANS
SMALLENTERPRISE
LOANS
MICROLOANS
AGRICULTUREL LOANS
 FD PREMIUM
 FD STANDARD
 FD TAXSAVER
 FD ADVANTAGE
 FD DHAN SAMRIDDHI
 RECURRING DEPOSIT

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OFFERS AND DISCOUNTS
 BANDHAN CREATIONS
 BANDHAN RUPAY CARD
 BANDHAN VISA CARD
ONLINE BANKING FACILITY
 BANDHAN PERSONAL BANKING
 BANDHAN CORPORATE BANKING

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RECENT DEVELOPMENTS UNDERTAKEN BY BANDHAN BANK
 Bandhan Bank has revised its deposit rates downwards by up to 50 basis points,
 Bandhan Bank is planning to hire about 5000 people in 2017 to meet the growing
manpower need at branches and other doorstep service centres.
 Bandhan bank to focus more on retail loans than corporate loans.
 Bandhan bank to expand the level by adding 1000 branches.
 Bandhan bank to add around 187 branches in FY – 2017.
 Bandhan bank catches deposits worth of Rs. 13,000 crores.
 Bandhan bank disbursed Rs. 3200 crores priority loans to bigger lenders.
 Bandhan bank achieves the success induction of five lakh customers since its
inception.
 Bandhan bank plans to achieve 30 – 40 percent growth by the end of 2017.

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QUESTIONS
1. What are the future challenges present for Bandhan bank?
2. Which kind of technology can be adopted by Bandhan bank in near future?

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REFERENCES
1. http://www.thehindubusinessline.com/money-and-banking/bandhan-bank-
gets-5-lakh-customers-within-one-month-of-operation/article7665091.ece
2. http://www.bandhanmf.com/loan.aspx
3. https://en.wikipedia.org/wiki/Bandhan_Bank
4. http://www.bandhanmf.com/background.aspx
5. http://www.bandhanmf.com/philosophy.aspx
6. http://www.bandhanmf.com/lenders.aspx
7. http://www.bandhanmf.com/investors.aspx
8. http://www.bandhanmf.com/network_organizations.aspx
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