WB gives India its newest bank
WB gives India its newest bank. With Bandhan from West Bengal becoming India\'s newest full-service bank to begin operations, Finance Minister Arun Jaitley said a \'blue-painted\' city has given birth to a new institution which was not the case when it was \'painted red\' -- referring to the past Left rule.
Kolkata: With Bandhan from West Bengal becoming India's newest full-service bank to begin operations, Finance Minister Arun Jaitley said a 'blue-painted' city has given birth to a new institution which was not the case when it was 'painted red' -- referring to the past Left rule.
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Bandhan joins banking league
The first new generation bank as started operations with 1.43 crore accounts, around 10,500 crore loan book and 19,500 employees. It has got 501 branches, 2022 service centres and 50 ATMs across 24 states
Bandhan Bank on Sunday began operations as a full-fledged bank with 501 branches and 1.43 crore accounts across the country, becoming the newest member of the estimated $2 trillion Indian banking industry.
Bandhan Bank on Sunday began operations as a full-fledged bank with 501 branches and 1.43 crore accounts across the country, becoming the newest member of the estimated $2 trillion Indian banking industry.
Bandhan said it is starting operations with 1.43 crore accounts, around Rs 10,500 crore loan book and 19,500 employees. To begin with, it has got 501 branches, 2022 service centres and 50 ATMs across 24 states.
It plans to have 632 branches and 250 ATMs in 27 states by the end of fiscal year 2016, the bank said after Finance Minister Arun Jaitley inaugurated its operations here at the Science City Auditorium in Kolkata, at a function attended by regulators, policy makers and luminaries from financial sector and corporate India.
The bank said over 71 per cent of the branches will be in rural India, including at least 35 per cent in unbanked rural pockets. State-wise, West Bengal has the maximum number of branches 220, followed by Bihar 67, Assam 60, Maharashtra 21, Uttar Pradesh and Tripura 20 each, and Jharkhand 15.
The Kolkata-headquartered bank has two divisions -- micro banking and general banking – and will offer complete retail financial solutions, including a variety of savings and loan products. Chandra Shekhar Ghosh, Founder, Managing Director and CEO of Bandhan Bank said, "Our business philosophy is 'customer first'.
We are a universal bank and we will have equal respect all our customers – big and small. Today, all of us in the Bandhan family are rededicating ourselves to fulfil the demand of every Indian – banking as a fundamental right. We are committed to usher in a new era in Indian banking."
The savings bank account interest rate has been fixed at 4.25 per cent for balance up to Rs 1 lakh and 5 per cent for balance above Rs 1 lakh. For term deposits, the maximum interest rate has been fixed at 8.5 per cent for 1-3 years, with an additional 0.5 per cent for senior citizens.
The RBI licensing norms stipulates that a new bank must have at least Rs 500 crore capital. Against this, Bandhan has started with Rs 2,570 crore capital which will soon be ramped up close to Rs 3,052 crore.
West Bengal Finance Minister Amit Mitra said, "Bandhan started with the twin objective of women empowerment and poverty eradication. With a repayment record of 99 per cent, the organisation has been successful in its objectives.
Among others, the inauguration event in Kolkata was attended by Atiur Rehman, Governor of Bangladesh Central Bank, LIC Chairman S K Roy, ITC Chairman Y C Deveshwar, BSE CEO Ashish Kumar Chauhan, NSE chief Chitra Ramkrishna, Kotak Mahindra Bank's MD Uday Kotak and IBA Chairman Arun Kaul.
