Bandhan Bank

Bandhan Bank Limited
Company type	Public
Traded as	BSE:541153; NSE:BANDHANBNK;
ISIN	INE545U01014
Industry	Financial services
Founded	23 August 2015;9 years ago
Founders	Chandra Shekhar Ghosh
Headquarters	Kolkata,West Bengal,India
Number of locations	6,297 Banking outlets(2024)
Area served	India
Key people	Dr. Anup Kumar Sinha; (Chairman); Ratan Kumar Kesh; (MD & CEO);
Products	Retail banking; Corporate banking; Investment banking; Mortgage loans; Private banking; Wealth management; Asset management; Investment management; Mutual funds; Exchange-traded funds; Index funds; Credit cards; Risk management;
Revenue	₹21,034 crore(US$2.5 billion) (2024)
Operating income	₹6,639 crore(US$800 million) (2024)
Net income	₹2,230 crore(US$270 million) (2024)
Total assets	₹177,842 crore(US$21 billion) (2024)
Number of employees	77,500 (2024)
Website	www.bandhanbank.com

Bandhan Bank Ltd.is a banking andfinancial servicescompany, headquartered inKolkata.

History

Bandhan was set up in 2001 as anot-for-profitentity with the objective of financial inclusion andwomen empowermentthrough sustainable livelihood creation. It started its microfinance operations from Bagnan, a small village, about 60 km fromKolkata.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 itsmicrofinanceactivities. In 2010, it became the largest microfinance institution (MFI) in the country.^[3]

In April 2014, Bandhan received an in-principle approval from theReserve Bank of India(RBI).^[4]On June 17, 2015, RBI granted the banking licence to Bandhan, making it the first-ever microfinance institution to become a universal bank in India.^[5]

Bandhan Bank commenced operations on August 23, 2015. The thenUnion Finance Minister,Late ShriArun Jaitley,inaugurated the Bank inKolkata.^[6]Its public shareholders then included International Finance Corporation; Caladium Investment Pte Ltd (the sovereign wealth fund ofSingapore,an arm of GIC); andSmall Industries Development Bank of India (SIDBI).

On 27 March 2018, Bandhan Bank was listed on theboursesand became the 8th largest bank in India by market capital, on the day of listing itself.^[7]

Merger

In October 2019, Bandhan Bank acquired GRUH Finance Limited,^[8]a Housing Development Finance Corporation Limited backed housing finance company in the share-swap deal by way of scheme of amalgamation, in order to venture into the affordable housing finance.^[9]

Investors

Bandhan Bank is an associate of Bandhan Financial Holdings Limited (BFHL)^[10]which is holding 39.99% of 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%).^[11]

Operations

Bandhan Bank is present in 35 out of 36 states and union territories ofIndia,with 6,297 banking outlets and 3.44 crore customers.^[12]^[13]Having received the universal banking licence from the Reserve Bank of India, Bandhan Bank started operations on August 23, 2015, with 501 branches, 50ATMsand 2,022 Banking Units (BUs). The Bank has mobilised deposits of ₹1,33,207 crore and its total advances stand at ₹1,25,619 crore as of June 30, 2024.^[12]

Bandhan Bank is focused on inclusive banking and reaches out to the unbanked and under-banked segments of the country, with 73% of its branches situated in rural and semi-urban areas.^[14]

Products and services

The Bank's products and services ranges from savings to current accounts, from fixed deposits to credit cards, from home loans to personal loans, from insurance to mutual funds, and more.^[15]

Listing and shareholding

The equity shares of Bandhan Bank are listed on indian stock marketBSEand theNSE.^[16]The IPO of the Bank oversubscribed by almost 15 times at the end of the three-day long issue.^[17]^[18]On its stock exchange debut (March 27, 2018), the equity opened at ₹487.33 on the National Stock Exchange and closed at ₹476.85; 27% over its issue price of ₹375.^[11]

Shareholders as on March 31, 2022	Shareholding (%)^[11]
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

References

^"Quarterly results FY2024-25"(PDF).
^"Bandhan Bank Ltd".Business Standard India.Retrieved6 May2021.
^"Big Lender Of Small Loans".Business Today.3 March 2020.Retrieved4 April2022.
^"RBI grants in-principle approval to IDFC, Bandhan for new bank licences".The Economic Times.Retrieved4 April2022.
^"RBI gives nod to bank licences for IDFC, Bandhan".India Today.2 April 2014.Retrieved4 April2022.
^"Jaitley inaugurates Bandhan Bank in Kolkata".Indiablooms.com.Retrieved4 April2022.
^"8th largest bank in India".Economics Times.Retrieved28 March2018.
^"Bandhan Bank gets shareholders' nod to merge Gruh Finance – Times of India".The Times of India.30 July 2019.Retrieved1 August2019.
^"Bandhan Bank gets CCI approval to acquire Gruh Finance".moneycontrol.Retrieved17 April2019.
^"Ownership rules: Promoter dilutes 20.95% stake in Bandhan Bank".The Financial Express.4 August 2020.Retrieved14 October2020.
^^a ^b ^c"Bandhan Shareholding - March 31, 2022"(PDF).Bandhan Bank.
^^a ^b"Q1 2024-25"(PDF).
^"Bandhan Bank and 5 other stocks that analysts say can offer solid short-term returns - Money-making Ideas".The Economic Times.Retrieved14 April2022.
^"Bandhan Bank Investor Presentation Q4 FY2020-21"(PDF).
^"Bandhan Bank Annual Report FY2020-21"(PDF).
^"Shares of Bandhan Bank get listed".Motilal Oswal.Retrieved27 March2018.
^"Bandhan Bank IPO subscribed 14.6 times on last day".Live Mint.Retrieved20 March2018.
^"Bandhan Bank IPO subscribed 14.60 times on final day".Money Control.Retrieved19 March2018.