- Total Number of Branches – 502
- Total number of ATMs – 50
- Savings bank account interest rate 4.25% for balance up to Rs 1 lakh and 5% for balance above Rs 1 lakh.
- For term deposits, the maximum interest at 8.5% for 1-3 years, with an additional 0.5% for senior citizens.
- 1.43 crore (14.3 million) accounts in 24 states.
- Over 71% branches will be in rural India. Thirty-five percent of these will be located in un-banked rural pockets.
- In West Bengal where this bank is headquartered, credit deposit rate stands at 68% against the national average of over 76%.
- Banking assets in India was estimated to be around USD 1.8 trillion in the fiscal year 2013-14. It is expected to touch USD 28.5 trillion by 2024-25.
With a thrust on rural penetration and promise to serve the regions with no banking facility, a new bank was born in India on Sunday. Joining the estimated USD two-trillion Indian banking industry, Bandhan Bank got into business with 501 branches and 1.43 crore accounts across the country. Finance Minister Arun Jaitley inaugurated the Bank in Kolkata on Sunday.
As per the license norms of the Reserve Bank of India (RBI), a new bank must have at least ₹500 crore ($76 million) capital. Against this, Bandhan has started with ₹2,570 crore ($391 million) capital and plans to raise it up to ₹3,052 crore ($464.4 million)
Over 71% branches of the Bandhan Banks will be in rural India. 35% of these will be located in un-banked rural pockets.
Of its 501 branches, 220 will be West Bengal followed by Bihar 67, Assam 60, Maharashtra 21, Uttar Pradesh and Tripura 20 each, and Jharkhand 15.
Bandhan, which means tie or bond, came into existence 14 years ago as a micro-finance non-profit organization with thrust on helping the poor and empowering the women. It is the first micro-finance company to get the license for running a bank.
From its inception, the bank will have 1.43 crore (14.3 million) accounts, a loan book of ₹10,500 crores ($1.6 billion) and employee strength of 19,500 employees. To begin with the bank will have presence in 24 states with 501 branches, 2022 service centers and 50 ATMs across 24 states.
By the end of fiscal year 2015, the Bank plans to add 131 more branches and as many 200 more ATMs and cover three more states.
Inaugurating its operations at the Kolkata’s Science City Auditorium, which was packed to the capacity by eminent persons from financial sector and corporate India, Jaitely said that: “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.”
“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,”
– Arun Jaitley, the Finance Minister of India
Speaking on the occasion, Chandra Shekhar Ghosh, Founder, Managing Director and CEO of Bandhan Bank said, “Our 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 fulfill the demands of every Indian – banking as a fundamental right. We are committed to usher in a new era in Indian banking.”
1. The conversion rate used in this article is 1 US Dollar = 65.7175 rupees.
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