World Bank would continue to support Bandhan

IFC holds close to 11% and Sidbi holds close to 10% stake in Bandhan

World Bank would continue to support Bandhan through fund infusion once the West Bengal-based microfinance institution turns into a bank. At present, World Bank, through Small Industries Development Bank of India (SIDBI) and the International Finance Corp (IFC ), the World Bank's private investment arm, has invested nearly $55 million in Bandhan. Of this, IFC's investment is close to $30 million.

At present, IFC holds close to 11 per cent and Sidbi holds close to 10 per cent stake in Bandhan."We have been supporting Bandhan from the beginning. Now it has to go through the process of becoming a bank. Our intention is to stay engaged and support it," said Ruhl.On being asked if World Bank was looking to infuse more funds in Bandhan, Ruhl said, "In future, it depends on what Bandhan would be asking for. We will look at their request very favouraly," said Ruhl.Against a regulatory requirement of a paid up capital of Rs 500 crore for a bank, Bandhan's reserves are close to Rs 1200 crore.

However, Bandhan as a bank would require long term debt for its operations, which might require external funding, said C S Ghosh, founder and chairman, Bandhan.On being asked if World Bank would be a possible stakeholder in Bandhan, once it converts into a bank, Ruhl said, "Definitely when it becomes a bank, we will look for further support."