Bandhan is transforming from a micro-finance lending firm to a full fledged bank. This Bandhan experiment might shape up the country’s future of banking. This was the feeling of those who attended the inaugural program of Bandhan Bank.
In fact, the formation of the bank marked a new start in the Indian banking field. In one and a half year’s time, there will be many payments banks as well as small finance banks emerging in the country. The Reserve Bank of India (RBI) has decided to provide licenses to the different entities that have varying capabilities with the simple agenda of improving the financial penetration.
The country is home to many experiments and the conversion of MFI into a bank is such experimentation. This was stated by Shyamala Gopinath, the deputy governor of RBI at the pre-launch event held on the even of the inauguration of Bandhan Bank.
Bandhan Bank is the pioneer one to stay off the block during the change happening in the finance and banking field in India. Moreover, the Executive Vice Chairman and Managing Director at Kotak Mahindra Bank, Uday Kotak stated that the finance and industry minister of West Bengal, Amit Mitra was also present at the event. It is said that Bandhan Bank will service two purposes such as poverty alleviation and women empowerment.
Bandhan received a license last year alongside IDFC. It will start its operations in the banking field on October 1. As the competition in the banking sector will be intense, RBI is surprising everyone with the 11 in-principle licenses to establish payments banks. The names of the small finance bank licenses will be read out today.
Ashish Kumar Chauhan, the Managing Director and CEO of BSE stated that the Bandhan Bank experiment is something that will be followed keenly. As per Ratna Vishwanathan, the CEO of Microfinance Institutions Network, Bankdhan Bank is the result of dream and hard work.