Bandhan to start banking operations by September next year

Leading micro finance institution Bandhan Financial Services, which has obtained banking licence from the Reserve Bank, today said it expects to start banking operations by September 2015.
"Banking operation should start in the next financial year, anytime between April and September," Bandhan's chairman and managing director of Chandra Sekhar Ghosh said here.
Asked about strategic investors, he said, "IFC has also shown interest that it would like to increase its stake. I understand other investors are also talking to us. We have not yet taken any call."
Decision about selling stake to IFC or any other private equity player would be taken in next 1-2 months, he said. He said the company has about Rs 500 crore and it does not require any further at the moment.

"Bandhan plans to start off initially with 600-700 branches across the country. Some of them may be either existing ones or new," he said.
Around 80 per cent of the branches will be in the rural areas and the rest in the urban regions.
Bandhan, the largest MFI with a market share of 25 per cent, had recently lowered the interest rate by 50 basis points to 22.5 per cent.
IFC and SIDBI are existing investors in Bandhan.