### **Overview** Bandhan Bank Ltd is a leading Indian universal bank with a strong mission rooted in financial inclusion, women’s empowerment, and holistic socio-economic development. Founded in 2001 as a microfinance-focused NGO in rural Bengal by Chandra Shekhar Ghosh, it evolved into an NBFC in 2006 and became the **first microfinance institution in India to receive a universal banking license**, commencing banking operations on **August 23, 2015**, with 2,523 banking outlets. Today, Bandhan Bank operates across **35 out of 36 Indian states and union territories**, supported by **over 6,300 banking outlets** and a workforce of more than **75,000 employees**. It serves **over 3.44 crore customers** and has established itself as one of the fastest-growing banks in India, combining grassroots financial inclusion with modern digital innovation. Sourav Ganguly, the former Indian cricket captain, has been the **brand ambassador since 2022**, reinforcing the bank’s values of dedication, leadership, and progress. --- ### **Business Model & Strategic Pillars** #### **1. Core Philosophy: "Aapka Bhala, Sabki Bhalai" (Your Good, Everyone's Good)** The bank’s business model is centred on **inclusive and sustainable banking**, bridging the urban-rural divide and providing affordable, innovative financial solutions to underserved populations—from micro-entrepreneurs to affluent customers. It leverages its **deep rural presence** and **dual-channel distribution (physical + digital)** to deliver end-to-end financial services under the **"One Bandhan" philosophy** of cross-leveraging assets, liabilities, and distribution. --- #### **2. Digital Transformation & Technology Enablement** Bandhan Bank is rapidly transforming into a **digitally enabled, phygital (physical + digital) banking platform**, with major investments in: - **Core Banking System (CBS) upgrade** completed in 2023 at scale without disruption. - Launch of **mBandhan mobile app** (175+ features) and enhanced Retail Internet Banking (RIB). - **Enterprise Data Lake, analytics, AI/ML, RPA, and microservices architecture** to enable hyper-personalization, risk-based pricing, and faster decision-making. - Deployment of **robotic process automation (RPA), facial recognition, QR banking, and WhatsApp banking** for improved customer convenience. - Development of **SMART-Android POS** for merchants and seamless digital onboarding platforms. A **Digital and Transaction Excellence Unit (DTEU)** drives corporate and retail digital banking, payment solutions, fintech partnerships, and transaction banking growth. --- #### **3. Diversified Retail Assets Portfolio** Bandhan Bank has strategically diversified beyond its microfinance origins to build a robust, **secured-lending focused retail asset base**. Key product segments include: - **Gold Loans (₹10,000 to ₹80 lakh)** – One of the fastest-growing segments; expanded through branch network growth and digitized operations. - **Auto Loans** – Including **Two-Wheeler Loans** (over 190,000 customers) and **Car Loans** (new & used; up to ₹1.5 crore), with over **90% approvals in under 5 minutes**. - **Commercial Vehicle & Construction Equipment (CVCE) Loans** – Ranging from ₹1 lakh to ₹25 crore; focused on infrastructure, logistics, and used CVCE market. - **Personal Loans** – ₹50,000 to ₹25 lakh, with tenures up to 5 years; scaled through OEMs, aggregators, and EV-focused programs. - **Loans Against Property (LAP)** – Launched in FY23, targeting SMEs, proprietorships, and businesses, with expansion in top 30 cities. - **Home Loans** – Over 450 branches and 300+ units in 18 states and 3 UTs; **80% focused on affordable housing**. The bank aims for **>55% secured loans in total advances by FY27**, reducing asset risk and improving long-term stability. --- #### **4. Micro & Inclusive Banking (Emerging Entrepreneur Business)** Bandhan continues to champion financial inclusion through its **Banking Units (BUs)** and **Emerging Entrepreneur Business (EEB)** verticals: - Targets underserved micro-entrepreneurs and low-income borrowers. - Offers Group Loans (JLG model), Small Business & Agri Loans (SBAL), Micro Home Loans, and Two-Wheeler Loans. - Over **50% of banking outlets are outside the eastern region**, reflecting a strategic shift to national diversification. - Digital solutions like **USSD banking (*99#)** serve customers with limited internet access. Case studies show real impact: - **Biplab** used a loan to convert fallow land into a **rubber plantation (75 kani, ~13 lakh sq ft)** with two processing units, employing 24 people. - **Manjula** transitioned from dairy to **commercial flower farming**, earning ₹1 lakh/month. - **Kuni** scaled her handicraft business into a retail operation with employees and expansion plans. --- #### **5. Institutional & Government Banking** - **Government Business Group (GBG):** Provides end-to-end banking to Central/State governments, PSUs, and Panchayats—leveraging its wide branch network. - **Institutional Lending:** Offers credit to NBFCs, HFCs, and public financial institutions; plans to expand into **education and healthcare sectors**. - **Mid-Market Group (MMG):** Serves **SMEs and corporates** with working capital, term loans, LCs, BGs, project finance, and trade solutions. --- #### **6. Third-Party Product Distribution** Bandhan Bank functions as a **one-stop financial services destination**, distributing third-party products: - **Life Insurance:** Corporate agency with **Bajaj Allianz Life, HDFC Life, Kotak Life, and Bandhan Life**; offers protection, savings, ULIPs, and annuities. - **General & Health Insurance:** Partners include **HDFC ERGO, Bajaj Allianz, Niva Bupa**; promotes post-pandemic awareness on health coverage. - **Mutual Funds:** Distribution via **mBandhan, RIB, and physical branches**; research-driven, with NFO access. - **3-in-1 Online Trading:** Offered digitally. - **Co-Branded Credit Cards** launched. Distribution is powered by **data analytics, AI, and ecosystem partnerships** to enhance cross-sell and customer financial wellness. --- #### **7. Liability Franchise & Affluent Banking Growth** - **Retail Deposits:** Strong focus on growing **CASA and retail term deposits**, reducing reliance on bulk funding. - **Affluent Business Segment:** A major growth driver: - Contributes **45% of retail deposits** and **34% of total liabilities**. - Added **100,000+ affluent customers** in FY25 through **Elite and Elite Plus** offerings. - Dedicated relationship managers, green-channel onboarding, and personalized services. --- #### **8. Merchant Banking & Payment Ecosystem** - **Merchant Acquiring Business (MAB)** is central to transaction banking: - **326% YoY growth in merchant acquisitions**, with rising PoS/EDC and payment gateway (PG) adoption. - **Point-of-Sale (POS) solutions** boost current account relationships and transaction volumes. - Case: **Jamimahrani Samuel** revived her restaurant '777 Eater's Den' with a ₹2 lakh loan, achieving ₹2+ lakh monthly profits. --- #### **10. Key Leadership & Expertise** - **Chandra Shekhar Ghosh:** Founder and visionary leader; former NGO worker turned banker of the year (2018–19). - **Mr. Kesh & Mr. Rajinder Kumar Babbar:** Ex-HDFC Bank Rural Banking leaders; bring deep expertise in MSME, rural, and retail finance. - **Mr. Chander:** 42 years in banking; ex-Head of Corporate Banking, IndusInd Bank; Independent Director. - **Mr. Pinaki Halder:** Technology CTO with 20+ years at Axis Bank; leads digital transformation. - **Mr. Amitava Goswami:** Head of Branch Operations; ex-SCB, Axis Bank. - **Mr. Dutta Gupta:** Housing finance expert with 20+ years in mortgage and inclusive lending.