Bandhan Bank

Bandhan Bank is an Indian Banking and Financial Services company based in Kolkata India.[1] It was the newest bank to receive banking license by Reserve Bank of India in 2014 and start its public operations with 600 branches in early 2015.[2][3]

History

Bandhan Bank was setup by Bandhan - India’s largest microfinance company and world’s largest non-deposit accepting microfinance institution (MFI) in 2014.[4][5] Bandhan was founded by its Chairman and Managing Director Chandra Shekhar Ghosh in 2001. Bandhan lend money to low income women entrepreneurs and small -scale businesses. As of Dec 2014 Bandhan micro loan portfolio is INR 8000 crore ($1292 million) and nearly 6.2 million borrowers, 2022 branches in 22 stated and more than 13000 employees.

Branding, Advertising and Consulting

Ogilvy & Mather build the new branding and crossover strategy from micro-finance to mainstream banking. Ogilvy also improvised the interior styles of Bandhan . Madison Communications finalised the advertising strategy of the bank.[6] Consulting firm Deloitte Touche Tohmatsu India implemented the various transformation process in the organisation.[7]

IT and Operation Support

The entire Information technology (IT) function including the fully integrated banking, payment platform and backend support is outsourced by the Bank for seven years to US based Fidelity Information Services (FIS).[8][9]

Human Resources Management

Aon Hewitt a human resource consulting firm was hired to build and implement new human resources management and compensation strategy for existing and new employees. Bandhan Bank had hired 400 skilled bankers and 3,000 freshers before the initial public operation.[10]

Investors

The major investors in the parent company of Bandhan Bank are Chandra Shekhar Ghosh , World Bank’s International Finance Corporation (IFC), Singapore sovereign wealth fund GIC,[11] Financial Inclusion Trust, North Eastern Financial Inclusion Trust, Bandhan Employees Welfare Trust, Small Industries Development Bank of India (SIDBI).[12][13]

References

  1. ↑ "Bandhan to Focus on Deposits in Initial Years". NDTV. Retrieved 26 February 2015.
  2. ↑ "Meet Bandhan CMD Chandra Shekhar Ghosh, the man who pipped Birlas and Ambanis for a bank license". The Economic Times. Retrieved 26 February 2015.
  3. ↑ "Deserving the honour". Business Today. Retrieved 26 February 2015.
  4. ↑ "Bandhan now closes in on Grameen Bank". Business Standard. Retrieved 26 February 2015.
  5. ↑ "Set to enter big league, Bandhan to bank on core competence". Indian Express. Retrieved 26 February 2015.
  6. ↑ "We do not, for a change, plan to target the corporate sector for lending". Business Standard. Retrieved 26 February 2015.
  7. ↑ "Chandra Shekhar Ghosh's Bandhan banks on building ties with the underprivileged". Forbes India. Retrieved 26 February 2015.
  8. ↑ "Bandhan Bank may begin operations by early 2015". Business Today. Retrieved 26 February 2015.
  9. ↑ "FIS to provide technology services to Bandhan Bank". Financial Express. Retrieved 26 February 2015.
  10. ↑ "Bandhan banking on low-income group & eastern region". The Financial Express. Retrieved 26 February 2015.
  11. ↑ "Bandhan Bank gets fund commitment from GIC, IFC". DNA India. Retrieved 26 February 2015.
  12. ↑ "MFIs' portfolio reaches historic high of Rs 35k cr". Business Standard. Retrieved 26 February 2015.
  13. ↑ "IFC picks up close to 11% in MFI Bandhan Financial Services for Rs 135 crore". The Economic Times. Retrieved 26 February 2015.