Bandhan Bank

Bandhan Bank Starts Ops; Branches in 3 Places in Kerala

Thiruvananthapuram: Bandhan Bank, which commenced operations this Sunday, will have branches at Edappally, in Kochi, Thiruvananthapuram and Kozhikode, in Kerala. The bank will have 14 branches in Southern India, which has been an unchartered territory for Bandhan’s microfinance business.

The country’s newest bank commenced its operations as a universal bank with 501 branches, 2022 service centres and 50 ATMs across 24 Indian states on Sunday.

The bank will have 632 branches and 250 ATMs in 27 states by the end of fiscal year 2016. It starts with 1.43 crore accounts and around Rs 10,500 crore loan book. It has 19,500 employees. Over 71% of the branches will be in rural India and at least 35% in unbanked rural pockets.

State-wise, West Bengal has the maximum number of branches 220, followed by Bihar 67, Assam 60, Maharashtra 21, Uttar Pradesh and Tripura 20 each, and Jharkhand 15.

The Kolkata-headquartered bank has two divisions — micro banking and general banking – and will offer complete retail financial solutions, including a variety of savings and loan products.

The savings bank account interest rate has been fixed at 4.25% for balance up to Rs.1 lakh and 5 % for balance above Rs.1 lakh. For term deposits, the maximum interest rate has been fixed at 8.5 % for one to three years, with an additional 0.5% for senior citizens.

The Reserve Bank of India’s licensing norms stipulate that a new bank must have at least Rs 500 crore capital. Against this, Bandhan starts with Rs 2570 crore capital which will soon be ramped up close to Rs 3052 crore. This translates into 44.54 % capital to risk weighted assets ratio or CRAR for the new bank, signifying its robustness.

Speaking after inaugurating the bank in Kolkata, Arun Jaitley, Union Finance Minister said, “West Bengal is known for producing several intellectuals, but no entrepreneurs. The launch of Bandhan Bank will not just boost the growth of  Bangla entrepreneurs, but  signify the return of entrepreneurs to West Bengal.”

He added, “the eastern states including eastern Uttar Pradesh, Bihar, West Bengal, Orissa and the north-eastern states have the potential to raise the GDP rate of India. The Central Government will support any initiative like that of Bandhan Bank, that can lead to enhanced growth rate and prosperity of the nation.”

According to Chandra Shekhar Ghosh, Founder, Managing Director and Chief Executive Officer, Bandhan Bank, “the bank’s business philosophy is `customer first’. We are a universal bank and we will have equal respect all our customers – big and small. Today, all of us in the Bandhan family are rededicating ourselves to fulfil the demand of every Indian – banking as a fundamental right.  We are committed to usher in a new era in Indian banking.”