Business Standard

MFI Bandhan applies for banking licence

Once the MFI converts into a bank, it will be able to slash interest rates by 10%

Related News

The country’s largest today applied for a full-fledged banking licence. The MFI, which has about 4,6,00,000 borrowers, controls about 22% of the microfinance space in India. The has a paid-up capital of Rs 1,000 crore, against the regulatory requirement of Rs 500 crore, said Chandra Shekhar Ghosh, chairman, Bandhan.

Once the MFI converts into a bank, it will be able to slash interest rates by 10%, against the present rate of about 22%, added Ghosh.

Bandhan has about 1,804 branches across India, with about 50% concentrated in West Bengal. The MFI has sought conversion of all the MFI branches into bank branches.

“We intend to cater to about 2,50,00,000 borrowers by 2020. The basic model of banking will remain the same in rural areas,” said Ghosh.  

With an employee base of about 1,200, Bnadhan has already started training staffs for banking services.

Earlier, the MFI had appointed  consultancy firm Deloitte for preparing blueprint for banking foray. It had also  inducted two new board members from the banking sector, including V K Chopra, former chairman and managing director, Corporation Bank.

Read more on:   
|
|
|
|

Read More

ICRA upgrades rating for Three MFIs - Grameen, Ujjivan; Utkarsh

After consolidating business post crisis in Andhra Pradesh in 2010, Microfinance Institutions (MFIs) are showing distinct improvement in their credit ...

Quick Links

More news from Finance Rss icon

S&P re-rating should buffer rupee when US Fed raises rates

Experts believe there would be some reaction when the US Fed does move but it would be a limited impact

SBI fears defaults by UP private sugar mills

SBI MD writes to UP chief secretary expressing her concerns

FinMin asks public sector insurers to have female employees placed near family

In August, a similar directive was given to public sector banks with respect to their female employees

Back to Top