Bandhan Bank Details and Interest Rates
Bandhan Bank is the first ever bank that has been setup in India’s eastern part ever since the country earned its independence. This bank is headquartered in Kolkata, West Bengal. Chaired by Mr. Ashok Lahiri, the Bandhan Bank is Bandhan Financial Holding’s fully-owned subsidiary. Though the bank was incorporated back in year 2014 on December 23, the official inauguration of the bank took place only in 2015 on August 23. Arun Jaitley, India’s Union Finance Minister inaugurated the bank. The bank has started its operation with 501 branches spread all over India.
In 2001, Bandhan started off as a micro-finance lending company and rapidly grew. Only 13 years later, the company applied for universal bank setup, fulfilling the basic requirement of ₹500 crore of corpus. The bank started off with a total capital of ₹2,570 crores. The bank will however soon raise its capital base to ₹3,052 crores.
Chandra Shekhar Ghosh who founded the company back in 2001 will be CEO and MD of the bank. On the other hand, Ashok Lahiri was actually Indian government’s chief economic advisor. Though quite difficult to believe, the bank started off, as already mentioned, with 501 branches. All these branches went operational on the very first day the bank opened its doors. Also, 50 ATMs went operational on the very same day. The bank is aiming to increase its branch and ATM network to 632 and 150 by end of 2015-2016 financial year. These branches and ATMs will be serving 27 different states of India with a total manpower of 19,500 employees.
The bank is aiming to set up 71% of its total branches in rural India and at least 35% of these will be serving those areas in rural India which have no banking access till date. The bank already has 1.43 crore operational accounts and maintains a loan book of massive ₹10,500 crores.
Here are some figures and rates offered by Bandhan Bank that will help you decided whether you want to open an account with this bank or not:
- Balance of ₹100,000 and below: fixed interest rate offered is 4.25%
- Balance of ₹100,001 and above: fixed interest rate offered is 5%
- Fixed deposits or term deposits: maximum of 8.5% interest rate per year for 1 to 3 years. Senior citizens will enjoy additional 0.5% interest rates, taking the effective maximum interest rate for them at 9% maximum.
- Bank has set a base rate of 12% per year for loans.
- The bank will charge 1% fee for processing loans in addition to 14% service tax or ₹5,000 processing fee in addition to 14% service tax, whichever is higher against all loans.
- Locker facility is available with Bandhan Bank with the minimum charge for locker being ₹1,000.
- Mutual funds and insurance products are not offered by the bank at this stage. They may however plan on bringing in those financial products.
- The bank is currently using RuPay platform for offering 5 different types of debit cards. There are plans for introducing VISA debit cards but no specific time frame has been mentioned for that.
Loans Offered by Bandhan Bank
Currently the bank is offering loans for two-wheelers, home loans, overdrafts (against fixed or term deposits) as well as loan against property. For loans designed for two-wheelers, 3% of total loan amount will be deducted as processing fee.
Amit Mitra, Finance Minister of West Bengal has praised Bandhan Bank stating that the organization started off with two primary objectives – first, poverty eradication and second, women empowerment and it has been highly successful in attaining those objectives. Mitra also said that the organization has 99% repayment record, making it one of the few organizations which have been highly successful with their objectives.
Bandhan Bank has several investors which include:
|Sno||Bandhan Bank Investor|
|1||Caladium Investment Pte.Ltd.|
|2||SIDBI or Small Industries Development Bank of India.|
|3||Bandhan Employees Welfare Trust.|
|4||North Eastern Financial Inclusion Trust.|
|5||Financial Inclusion Trust.|
|6||Singapore Sovereign Wealth Fund GIC.|
|7||IFC or International Finance Corporation.|
It looks like the bank has started with a strong footing in the competitive banking market of India. Only time will tell whether the bank will stand up to become one of the biggest banks in India or not. We have to wait and watch.
Bandhan Bank Interest Rates
|1||Less Then 1 lakh||4.50%|
|2||2 Lakh or more||5%|
|3||Term Deposit (1-3 Years)||8.50%|
|4||Term Deposit Senior Citizen||9%|