Bandhan Bank: Information Analysis

Note: This article has no recommendation to either buy or avoid this IPO. Instead, we have presented all the relevant information based on which you can make your own decision. History When you begin a journey, you seldom know what your final destination is going to be. You may set out to achieve one goal and once you reach it, it becomes a milestone for the next. Bandhan Bank, which is planning to raise Rs 4,473 crore through its IPO is a perfect example of this phenomenon. When Chandra Shekhar Ghosh set up an NGO called Bandhan-Konnagar in 2001, little did he know that it was going to function as a full fledged private bank 14 years later in 2015 as Bandhan Bank. The Kolkata based entity achieved its second milestone when it converted itself into an NBFC- Bandhan Financial Services Pvt Ltd, eight years later in 2009. It transferred its entire micro finance portfolio in the newly formed entity. Bandhan-Konnagar the original entity continues to function as a CSR arm. Currently, the public shareholders of the holding company Bandhan Financial Services Limited (BFSL) consist of big names like International Finance Corporation (IFC), FIG Investment Company, Small Industries Development Bank of India (SIDBI) and Caladium Investments Limited amongst others. The journey of BFSL is not without its share of ups and downs. In 2011, it survived Andhra Pradesh crisis when borrowers in this southern state stopped paying microfinance loans. Other major landmarks include when in 2012, IFC (the private finance arm of the World Bank) picked 10.9 per cent stake in BFSL for Rs 135 crores. In 2014, it obtained licence from RBI to set up a bank. Before obtaining banking license it was the largest microfinance company by customer count and size of its loan book.   2002 2006 2011 2016 Branches 2 155 1553 2022 Borrowers (000s) 0.5 150 3250 6717 Loan Book (Crores) 0.35 22.38 2500 15600 Overview Incorporated in December 23, 2014 it started its operations on August 23, 2015 when its parent company Bandhan Financial Servic