Bandhan Bank, a dynamic universal bank in India, specializes in offering short-term microfinance loans and banking services to individuals who have been overlooked or underserved. The foundation of providing banking services to such individuals primarily relies on fostering personal connections.
Bandhan Bank commenced its operations as a Society in 2001, with a strong focus on financial inclusion and women's empowerment. It aimed to create sustainable livelihoods and launched microfinance operations in rural Bengal. In 2006, the Society acquired an NBFC and established Bandhan Financial Services Private Limited, further emphasizing its commitment to financial inclusion. A significant milestone was achieved in 2009 when the Society transferred its Microfinance portfolio to the NBFC, propelling it to become the largest microfinance institution (MFI) in the country by 2010. In 2015, Bandhan Bank obtained the universal banking license, making it India's first microfinance institution to operate as a Universal Bank, boasting an impressive network of 2,523 banking outlets. The bank successfully issued its IPO in 2018 and subsequently got listed on stock exchanges. The funds raised through the IPO were strategically utilized in acquiring HDFC Limited's stake in GRUH Finance in 2019.
Over 53% of the bank's branches are in rural and semi-urban areas, showing its commitment to inclusive banking. The bank offers internet banking services to help customers with their everyday banking needs. A significant part of its housing portfolio meets the requirements for Priority Sector lending, with a focus on affordable housing. The bank provides various types of home and property loans for purchases, construction, repairs, renovations, and extensions. It also offers Loan against Property for residential properties and loans against rent receivables for commercial properties. These loans are available to both salaried and self-employed individuals, including those new to credit, in line with the bank's objective of inclusive banking.
Banking Unit Business:
The creation of the Banking Unit (BU) vertical was driven by the changing requirements of customers. Its main focus is to support women in their journey to become entrepreneurs by offering group-based microcredit loans. The BU vertical of the Bank is committed to assisting borrowers at the lower end of the economic pyramid by providing accessible and flexible loans that contribute to their entrepreneurial growth and enhance the well-being of both themselves and their families. The Bank's unwavering dedication to inclusive banking and economic empowerment for marginalized communities remains the driving force behind the Banking Unit vertical.
To cater to the varied requirements and preferences of its clientele, the Bank provides a range of nine loan products under Group Loans, Small Business and Agri Loans (SBAL), and Other Loans, all of which are available through the Bank's various banking unit outlets.
Group Loans:
This loan category consists of 4 loan products - Srishti Loan, Subriddhi Loan, Suraksha Loan, and Sushiksha Loans. The Srishti Loan provides financial assistance to entrepreneurs looking to establish or expand their businesses, with funding ranging from ₹15,000 to ₹1,00,000. The Subriddhi Loan enables customers to address additional business requirements while their current loan is still active, offering a sanctioned amount of up to 50% of the original loan. The Suraksha Loan assists existing customers in covering unforeseen expenses such as medical bills, water, and sanitation, with a sanctioned amount of up to ₹15,000. Lastly, Sushiksha Loans are designed to support customers in meeting their children's educational expenses, with a sanctioned amount of up to ₹10,000.
Small Business and Agri Loans:
It contains 3 loan products - Sahayata Loan, Suyog Loans, and Bazaar Loan. Sahayata Loan is designed to support the business growth of individuals engaged in various income-generating activities. The loan amount varies from ₹50,001 to ₹3,00,000. Suyog Loans are granted to assist customers in meeting additional short-term business requirements while an existing Sahayata loan is active. The loan amount can be up to 50% of the disbursement amount of the ongoing Sahayata loan. Bazaar Loan is intended to offer financial assistance to small entrepreneurs who have a super-saver account with the Bank. This loan is provided to help existing deposit customers fulfill their working capital needs and can range from ₹26,000 to ₹1,50,000.
Other Loans:
Other Loan category comprises 2 loan products - Micro Home Loan and Two-wheeler Loan. Micro Home Loan is provided to current BU clients for the purpose of building and improving their homes. Ranging from ₹1,00,000 to ₹10,00,000, these loans help fulfill the customer's dream of living in their ideal home. Two-wheeler Loan is available to existing BU borrowers, enabling them to achieve their goal of owning a two-wheeler. The approved loan amount can vary from ₹30,000 to ₹1,20,000.
Bandhan Bank is committed to providing financial services to underserved individuals, both in urban and rural areas. With a focus on inclusive banking, the bank aims to build lasting relationships with customers by offering products that meet their evolving needs. Positioned for future growth, Bandhan Bank is dedicated to improving lives and contributing to the nation's development.
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