FM Arun Jaitley inaugurates Bandhan Bank as full-fledged scheduled commercial bank in Kolkata. Bandhan Bank becomes India’s first private bank in 11 years. Bandhan is the first microfinance company to transform into a bank. Reserve Bank of India has turned liberal in doling out banking licenses to entities of different capabilities. It has just issued 11 in-principle licenses to set up payments banks.
The launching of commercial banking services will allow 500 Bandhan Financial Services (BFS) branches to start functioning across the country. The company has 67 lakh micro finance borrowers and their accounts have been formally transferred to the new entity, creating around Rs 10000-crore strong loan portfolio to start with.
Former chief economic advisor to the finance ministry Ashok Kumar Lahiri will head a 10-member board which consists of as many as four former top bank executives such as Bhaskar Sen of United Bank of India and B Sambamurthy of Corporation Bank.
BFS Chairman cum Managing Director Chandrasekhar Ghosh was quoted, as saying that BFS follows a philosophy of respecting each customer and meeting their needs, regardless of their financial position. As per RBI guidelines, Bandhan will now merge its micro-finance business with the bank.
Test Your Knowledge
Name the other bank which got licence along with Bandhan?
