Bandhan Bank to start operations today

Bandhan Bank to start operations today

 Adding a new and modern chapter to the history of banking in Bengal, where the industry took its first tentative steps in the 19th Century, Bandhan Bank, the newest bank to come from Kolkata, will make its appearance and start operations from Sunday.

Bandhan will be the first bank in 72 years to have its headquarters in the eastern metropolis, which is often written off as a hub of financial activities. 

Starting out as a credible micro finance company, Bandhan Financial Services (BFSPL) became one of the first companies in years to receive license from the Reserve Bank of India to function as a full-fledged bank after the country’s central bank decided to award such licences some time back.

Since the announcement in April that BFSPL’s application to convert to a bank has been approved, the financial institution has been working towards converting its huge network of 6.7 million investors into bank customers. At a basic amount of Rs 1,000 per customer, the bank is expected to start off with a staggering Rs 670 crore corpus.

Bandhan’s managing director Chandra Shekhar Ghosh, a rather guarded and low profile person, informed reporters that the company currently has a loan portfolio of Rs 10,500 crore and it is ‘committed’ to giving fresh loans of at least Rs 3,000 crore to borrowers. Cautious by nature, just like its managing director, the company wants to keep it uncomplicated and stick to the straight cut job of raising enough deposits to give out fresh loans and turn in high-cost bank loans.

According to sources, Bandhan, after having honed its skills in the art of lending to the poor, is treading carefully while stepping out of its comfort zone when it comes to big ticket loans.

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