MICROCAPITAL BRIEF: Indian Institute of Management at Ahmedabad (IIMA) Report Indicates Bandhan Clients Increased Wealth

The Indian Institute of Management, Ahmedabad (IIMA), a public business school located in the Indian state of Gujurat, recently released a report detailing the results of its impact study on Bandhan Financial Services Private Limited, an Indian microfinance institution. The primary objective was to “assess the impact of microcredit and other development interventions being made in lives of the underprivileged.” The study was conducted using a stratified random sample of 1,050 households drawn from five groups in the state of West Bengal including Bandhan customers as well as several categories of control households.

According to the study, households that were clients of Bandhan “increased their non-farm business assets by an average of Rs. 15,588,” or roughly USD 290, between 2010 and 2013. Further, the study indicated that such households were able to “generate on average 35.82 man-days per month of full-time employment for family members.”

The study, which is not available online, was led by Professor Samar K. Datta, a professor at the Centre for Management in Agriculture at IIMA.

By Makai McClintock, Research Associate

About Bandhan Financial Services Private Limited
Bandhan Financial Services Private Limited is a microfinance institution (MFI) based in Kolkata, India, that was founded in 2002. As of 2011, it operates approximately 1,750 branches in 18 states in India. It offers microenterprise loans as well as loans for health emergencies. As of September 2012, Bandhan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 835 million, a gross loan portfolio of USD 663 million, 4 million active borrowers, return on assets (ROA) of 6.44 percent and return on equity (ROE) of 37.6 percent. As of March 2012, the institution reported total deposits of USD 10.3 million but the number of depositors is unavailable.

Sources and Additional Resources

“Indian Institute of Management, Ahmedabad Presents Findings of the Study Report on Bandham;” published by Indian Institute of Management, Ahmedabad (IIMA); 2013; 2 pages; available at: http://www.iimahd.ernet.in/assets/upload/media/1423256596IIMA-Bandhan-WEB.pdf

MicroCapital.org story: “MICROCAPITAL BRIEF: Dr Muhammad Yunus, Indian Institute of Management – Ahmedabad to Raise $10m for Social Business in India”; published February 21, 2012; https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-indian-institute-of-management-ahmedabad-to-raise-10m-for-social-business-in-india/

MicroCapital.org story: “MICROCAPITAL BRIEF: Bandhan Financial Services Sells $112m in Securitized Loans to Industrial Development Bank of India (IDBI), Axis Bank, Development Credit Bank”; published February 29, 2012; https://www.microcapital.org/microcapital-brief-bandhan-financial-services-sells-5b-in-securitized-loans-to-industrial-development-bank-of-india-idbi-axis-bank-development-credit-bank/

MicroCapital.org story: “MICROCAPITAL BRIEF: responsAbility Lends $8.2m to Microfinance Institutions (MFIs) FINCA DRC, Bandhan of India, Opportunity Microcredit Romania”; published November 15, 2011; https://www.microcapital.org/microcapital-brief-responsability-lends-8-2m-to-microfinance-institutions-mfis-finca-drc-bandhan-of-india-opportunity-microcredit-romania/

MicroCapital.org story: “MICROCAPITAL BRIEF: Indian Microfinance Institution Bandhan Financial Services to Apply for Banking License”; published September 20, 2011; https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-bandhan-financial-services-to-apply-for-banking-license-2/

MicroCapital.org story: “MICROCAPITAL BRIEF: Dr Muhammad Yunus, Indian Institute of Management – Ahmedabad to Raise $10m for Social Business in India”; published February 21, 2012; https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-indian-institute-of-management-ahmedabad-to-raise-10m-for-social-business-in-india/

MicroCapital.org story: “MICROCAPITAL BRIEF: Indian Microfinance Institution Bandhan Financial Services Raises $29m in Equity from International Finance Corporation (IFC), Arranged by Intellecap”; published September 15, 2011; https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-bandhan-financial-services-raises-29m-in-equity-from-international-finance-corporation-ifc-arranged-by-intellecap-2/

MicroCapital Universe Profile: Bandhan Financial Services Private Limited
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bandhan+Microfinance

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