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Bandhan, the microfinance institution which is planning to convert into a bank, has recruited ten people for its management team.
The team that would lead one of India's newest banks comprises some big names from private and public sector banks, apart from non-banking finance companies (NBFC), said Chandra Sekhar Ghosh, founder and chief executive, Bandhan.
Bandhan has also recruited nearly 90 people at the mid-level, who will be posted at its new branches. Earlier, Bandhan has appointed global HR consulting firm Aon Hewitt to design, performance management programme and implement a compensation strategy for its workforce.
The new recruits have been inducted in departments such as risk management, operations, business development, planning, IT, internal audit, treasury and human resources. Among these, treasury management comes as an unknown territory as the MFI has so far no experience in it.
On July 2, Bandhan had invited applications from people with three to 15 years of experience in the banking and human resource fields. It received close to 27,000 applications for the 15 posts that were advertised.
Nearly 15-20% of the applicants were from Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) backgrounds. This apart, half of the applicants are from outside West Bengal; willing to shift their base from cities like Delhi and Mumbai to work in Kolkata.
Bandhan will open nearly 600 branches in one go, with nearly 70% of its operations concentrated in rural areas. The bank is expecting to open at least 10 million accounts in one go, as it plans to foray into the formal banking sector .
At present, Bandhan has about 2116 bank branches in 22 states, with loan outstanding of nearly Rs 6,200 crore. On an average, the MFI disburses nearly Rs 1,000 crore on a monthly basis, with monthly collections of nearly Rs 700 crore. The MFI has a market share of nearly 25% in the sector.
At present, there are about 13,000 people on Bandhan's payroll in rural areas; they are likely to be absorbed as regular employees of the proposed bank.