Bandhan Bank is not mere a typical commercial bank. At this moment, it seems to be one of the biggest instruments of financial inclusion and women empowerment in the country.
It mainly serves rural and unbanked female entrepreneurs. Till date, more than 6.7 million women have been benefited from its lending service. Started as a microfinance organization, it has now assumed the role of a full-service bank.
Background
With only Rs. 2 lakh start-up capital the organization, Bandhan-Konnagar was initiated in 2001. The founder, Chandra Sekhar Ghosh encouraged women in Konnagar, West Bengal to start their own businesses and to become financially independent.
In the very next year, the company received a funding of Rs. 20 lakh from the Small Industries Development Bank of India (SIDBI). A new branch was opened up and the company expanded its coverage.
In 2009, the organization got the status of a Non-Banking Financial Company (NBFC), named Bandhan Financial Services Pvt. Ltd. In June 2015, it got the final approval to work as a bank. Bandhan Bank was launched officially on 23rd August 2015.
Besides the founder CEO, Dr. Ashok Lahiri, former Chief Economic Advisor to Government of India is also involved in the management of the bank. The technologies used for core banking solution, payment platform etc. are developed by US company Fidelity Information Services.
Vision
Bandhan Bank aims to offer top-notch banking service to all. However, its main target group is financially excluded women population. It caters to the financial needs of the poor and disadvantaged section to offer them better education, healthcare and self-employment opportunities.
Banking Services
As a full-fledged bank, Bandhan Bank offers you the following services:
Account Opening
With Bandhan Bank, a customer can open savings as well as checking accounts. Multiple types of savings accounts e.g. Premium, Standard, Sanchay etc. are available. In addition, there are special accounts for Non-profit Organizations, accounts with zero-balance requirement etc.
Each has its own features and benefits. Get the details of available savings accounts from here. For a deposit of more than 1 lakh, the savings accounts yield interest income at the rate of 6% per annum.
Bandhan Bank allows the current account holders usually a much higher daily transaction limit compared to other banks. You can choose from any of its current account types, namely, Biz Premium, Biz Samriddhi etc. There are again special types of accounts for government and non-government organizations. Each account type has its own features and advantages. Learn the details of each current account from here.
The bank also provides Internet Banking, Mobile Banking and SMS Banking facilities. As a Bandhan Bank account holder, you can withdraw money 24/7 using the ATM network, make purchases and pay bills online and transfer money electronically. Not only that, you enjoy chequebook and passbook facility, get transaction alerts and of course, can contact its customer care anytime you need. Some of its branches have started offering NRI services also.
Loans
The highlight of the bank is its credit facility. It offers multiple types of loans including Retail Loans (for households), MSME Loans (for small and medium enterprise), Micro Loans (for running a home-based supplementary business) and Agri Loans (for farmers). You’ll get the details of loan features, interest rates and eligibility criteria from here.
Fixed Deposits
Bandhan Bank fixed deposit accounts can be opened for short and long-term periods. Fixed deposits with one to three year maturity period generate interest income at the rate of 8.25% per annum. You can withdraw money anytime paying a charge. Multiple types of fixed deposit accounts are available which vary in tenures and features. Learn more about the FD Premium, FD Tax Saver accounts and Recurring Deposits from here.
Facts and Figures
Despite being a newbie in the banking industry, Bandhan Bank put forward some enviable statistics.
- Total Employees: 19500
- Investors: North Eastern Financial Inclusion Trust, International Finance Corporation, SIDBI, Bandhan Employees Welfare Trust, Financial Inclusion Trust
- Net Profit (as of March 2016): Rs. 275 crore
- Total Deposits (as of May 2016): More than 13000 crore
- Total Loans (as of May 2016): More than 15200 crore
- Repayment Rate (as of March 2015): 99%
- Total Branches (as of May 2016): 670 branches (Branch Locator)
- Total ATMs (as of February 2016): 203
- Customer Base (as of August 2015): 10 million
- Coverage (as of May 2016): 29 states
- Net Value (as of February 2016): Rs. 3052 crore
Conclusion
The bank seems to have big plans ahead as it has started attracting employees from its multinational rivals. The bank officials make public that they are aiming at a growth of 30 to 40% by the end of FY17. Experts believe that with Bandhan Bank, Indian banking industry is entering a new era. Why not? It is the BANDHAN or bond with the economically deprived rural population that Indian banks were lacking since long.
