Bandhan Bank Turns 5: Going from strength to strength

Bandhan Bank, India’s youngest universal bank focussed on serving the needs of the unbanked and under banked sections of society will be completing five successful years of operations on August 23, 2020. In June 2015, the Bandhan Group, which addresses the financial needs of those at the bottom-of-the-pyramid across India’s rural and semi-urban areas, was given the final approval by the Reserve Bank of India (RBI) to set up a universal bank. For around two decades, Bandhan has tirelessly worked for the upliftment of India’s economically weak through access to timely microcredit, freeing the poor from the clutches of usurious moneylenders.  The universal banking licence allowed Bandhan Bank – which has inclusive banking at its heart – to transform into a robust and granular retail banking franchise, garnering a steady volume of retail deposits. This helped inculcate a habit of financial savings among its customers and also allowed the Bank to further bring down interest rates for borrowers. After becoming a bank, Bandhan Bank has spread its reach to diverse corners of India across 34 states and UTs via its 4,559 banking outlets and 485 ATMs. Apart from its microcredit offerings, which account for 64% of its portfolio, the Bank has extended into several new products such as loans to micro, small and medium enterprises (MSMEs), gold loans and affordable housing finance (through the merger of GRUH Finance with the Bank in October 2019). In these five years, the Bank has also emerged as a major job creator with its employee strength rising from around 13,000 to around 42,000 in this period. Apart from the direct employment created by the Bank, it has also helped in the creation of a multitude of indirect jobs. Assuming the Bank’s 1.12 crore micro borrowers employed at least another individual, not only did they ensure their own livelihood but created an additional 1.12 crore jobs.  “Over the last five years, Bandhan Bank has brought mainstream banking services to millions of unbanked and underbanked Indians and micro enterprises. This has helped them become financially independent and instilled a spirit of confidence in them. I would like to express my heartfelt gratitude to all our customers who have reposed their faith in Bandhan Bank, not only when it comes to availing credit, but also when it comes to trusting us with their life’s savings,” said Mr. Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer, Bandhan Bank.