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Bandhan Bank is an innovative Indian private bank that originated from a microfinance organization dedicated to financial inclusion and women empowerment. Founded in 2001 in Bagnan, a small village near Kolkata, the bank began as a non-profit entity focused on serving underbanked and underpenetrated markets. Key Milestones The bank’s transformative journey includes several significant achievements. In 2006, Bandhan acquired a Non-Banking Financial Company (NBFC) to scale up microfinance activities. By 2010, it had become the largest microfinance institution in India. A pivotal moment arrived on June 17, 2015, when it received a universal banking license from the Reserve Bank of India, becoming the first microfinance institution to transform into a universal bank. The bank officially launched its banking operations on August 23, 2015, with 501 branches and 50 ATMs

About Bandhan Bank

Bandhan Bank’s remarkable story began in 2001 as a visionary microfinance initiative founded by Chandra Shekhar Ghosh in Bagnan, a small village near Kolkata. What started as a modest mission to support underserved communities has transformed into one of India’s most innovative banking institutions.

Origins and Inspiration

Ghosh’s journey was driven by a profound understanding of rural financial challenges. Witnessing the exploitation of villagers by money lenders who charged exorbitant interest rates of 200-300%, he decided to create a different approach to financial services. His initial pilot program supported 25 destitute women in a semi-urban Kolkata area, helping them increase their average monthly income from ₹300 to ₹2,000.

The name “Bandhan,” meaning togetherness, reflects the bank’s core philosophy of building strong community connections. Ghosh personally traveled through Hooghly district, convincing women to take loans for business development and children’s education, despite initial skepticism.

Transformational Milestones

In 2006, Bandhan acquired a Non-Banking Financial Company (NBFC) to scale its microfinance operations. By 2010, it had become India’s largest microfinance institution. A pivotal moment arrived in April 2014 when the Reserve Bank of India granted an in-principle approval for a banking license, making Bandhan the first microfinance institution to transition into a universal bank.

On August 23, 2015, Bandhan Bank officially commenced operations, inaugurated by then Union Finance Minister Arun Jaitley in Kolkata. The bank started with 501 branches and quickly expanded its reach across India.

Strategic Vision and Growth

Bandhan Bank’s unique approach focuses on financial inclusion, particularly empowering women and supporting underbanked markets. Currently present in 34 Indian states and union territories, the bank has maintained its commitment to serving rural and semi-urban areas.

The bank’s strategic expansion includes diversifying beyond microfinance into comprehensive banking services. Its shareholders include prominent institutions like the International Finance Corporation and Singapore’s sovereign wealth fund.

Founder’s Legacy

Chandra Shekhar Ghosh’s entrepreneurial journey exemplifies the bank’s spirit – transforming from a small NGO with just ₹2 lakh in savings to leading a significant financial institution. His vision of connecting society through financial services continues to drive Bandhan Bank’s mission of inclusive growth.

Today, Bandhan Bank stands as a testament to innovative financial solutions that prioritize community empowerment and sustainable development.

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Mizoram Chief Minister Warns: Failure to Satisfy Customers Will Result in Loss of Business

Mizoram’s Chief Minister, Lalduhoma, has issued a warning to some banks operating in the state to improve their credit-debit (CD) ratio, which is currently below 40% for some banks. The CD ratio measures the percentage of deposits disbursed to customers compared to the total deposits received. Lalduhoma expressed disappointment that some banks are only disbursing 20% of deposits to customers while keeping 80% as reserves. He deemed this practice disrespectful to the people of Mizoram and urged the banks to prioritize the state’s development.

The Chief Minister specifically named several banks, including Yes Bank, Bandhan Bank, Axis Bank, ICICI, HDFC, Central Bank of India, Federal Bank, and North East Small Finance Bank, to improve their CD ratio. He warned that if there is no improvement, the state government will not remain a mute spectator and may result in the banks losing customers.

Lalduhoma emphasized the importance of cooperation between the state government and the banking sector to uplift marginalized sections of society, particularly in agriculture and micro, small, and medium-sized enterprises (MSMEs). He appealed to the bankers to expand their network to rural areas, making it easier for people to access banking services, especially in priority sectors.

The Chief Minister’s warning and appeal are aimed at promoting a more balanced and responsible approach to banking in Mizoram. By improving their CD ratio and expanding their services to rural areas, banks can play a more significant role in the state’s development and contribute to the betterment of people’s lives.