Bandhan's MF operations to be transferred to bank : Ghosh

Tags: Mutual Funds
Armed with an `in-principle' banking licence from RBI, city-based micro-finance(MF) institution Bandhan Financial Services would transfer its existing business to the proposed bank to be formed.

"The MF business activity of Bandhan will be transferred to the bank which will service the existing customers," Chairman and Managing director of Bandhan C S Ghosh told PTI.

Yesterday, RBI had granted `in-principle' banking licences to Bandhan and IDFC.

Ghosh said RBI had given 18 months time to start the banking operations. "We are preparing towards that. The process has already started", Ghosh said.

He said the regulatory capital requirement to start a bank was Rs 500 crore. "Our networth is Rs 1,100 crore. There is no immediate need for capital and the bank will be promoted by Bandhan Financial Services," he said.

Out of the present 2016 branches, 70 per cent were in the rural belt, Ghosh said adding some of them would be restructured.

Presently, Bandhan is serving 55 lakh borrowers and has 13 lakh employees on its rolls.

Bandhan would be the fourth bank with headquarters in Kolkata after UBI, UCO and Allahabad Bank.

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