Bandhan Bank, an Indian commercial bank based in Kolkata, recently announced that it plans to open one branch each in the cities of Bengaluru, Koramangala and Bannerghatta, all of which are located in southern India. Bandhan Bank aims to open a further 11 branches in the same region at an unspecified date.
The bank, which recently began accepting deposits, has fixed interest rates for savings accounts at 4.25 percent per year for amounts below INR 100,000 (approximately USD 1,500) and 5 percent for larger amounts. For term deposits, the maximum interest rate has been fixed at 8.5 percent.
As MicroCapital reported on June 26, 2015, Bandhan Bank had operated as a microfinance institution (MFI) since 2002 before it received a banking license and transformed into a commercial bank in August 2015.
As of March 2015, Bandhan Bank had a loan book of INR 95 billion (approximately USD 1.4 billion) and approximately 2000 branches in 22 states and union territories in India. As of 2014, Bandhan reported 5.4 million active borrowers, return on assets of 5 percent and a return on equity of 28 percent. The organization reported deposits of INR 800 million (approximately USD 12 million) on its first day of accepting deposits in August 2015.
By Victor Mugo, Research Associate
About Bandhan Bank
Founded in 2002 as Bandhan Financial Services Private Limited, Bandhan Bank is a commercial bank based in Kolkata, India. The organization received a banking license from the Reserve Bank of India (RBI), the central banking authority of India, in June 2015. Bandhan’s investors include the Indian commercial bank Punjab National Bank (PNB), the government-owned financial institution Small Industries Development Bank of India (SIDBI) and the World Bank Group’s International Finance Corporation (IFC). Bandhan operates two banking divisions: microbanking, which offers microfinance services, and general banking which offers other types of financial services including deposits and loans. As of March 2015, Bandhan had a loan book of INR 95 billion (approximately USD 1.5 billion) and approximately 2,000 branches in 22 states and union territories in India. As of 2014, Bandhan reported 5.4 million active borrowers, return on assets of 5 percent and a return on equity of 28 percent. The organization reported deposits of INR 800 million (approximately USD 12 million) on its first day of accepting deposits .
Sources and additional resources
 Deccan Herald: Bandhan Bank forays into south http://m.deccanherald.com/content/490932/bandhan-bank-forays-south.html/
 MicroCapital Brief on June 26, 2015 https://www.microcapital.org/microcapital-brief-indias-bandhan-financial-services-receives-banking-license-permitting-it-to-accept-deposits-plans-to-begin-banking-operations-in-august-2015/
 Indian Times: Bandhan Bank fixes interest rates http://economictimes.indiatimes.com/industry/banking/finance/banking/bandhan-bank-fixes-interest-rates/articleshow/48516113.cms
 Live Mint: Bandhan Bank garners Rs80 crore deposits on first day http://www.livemint.com/Politics/lbP78E9v4cNA6jcP39JXRL/News-In-Numbers–Bandhan-Bank-garners-Rs80crore-deposits-on.html
 MicroCapital Universe Profile: Bandhan Bank https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bandhan+Bank
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