Bandhan Bank Ltd
Bandhan Bank Ltd (BANDHANBNK)

Bandhan Bank Ltd (BANDHANBNK)

₹273.140.17%

Key Stats

₹272
Day's Price Range
₹276.8
₹229.55
52-Week Price Range
₹349.55
1 Month Return-3.12 %
3 Month Return-10.05 %
1 Year Return-7.65 %

Company Financials

  • Annual
Value in ₹ crore

Peer Comparsion

EPS
Rank 26
BVPS
Rank 28
Dividend Yield
Rank 14
ROE
Rank 10
13.53%
Debt To Asset
Rank 17

Company Information

Bandhan Bank is a commercial bank focused on serving underbanked and underpenetrated markets in India. Bandhan Bank is the first instance in India of a microfinance entity transforming into a universal bank. The bank currently offers a variety of asset and liability products and services designed for micro banking and general banking. Its asset products consist of retail loans including a substantial portfolio of micro loans as well as micro small and medium enterprise SME loans and small enterprise loans. In addition to the loan and deposit products the bank also offers other banking products and services to generate noninterest income and cater towards the additional needs of its customers. These products and services include debit cards Internet banking mobile banking EDCPOS terminals online bill payment services and the distribution of thirdparty general insurance products and mutual fund products. The banks total banking outlets as on 31 March 2021 stood at 5310. The network consists of 1147 branches and 4163 banking units and the total number of ATMs stood at 487 across the country. Bandhan Bank has significant presence in underpenetrated East and North East India. Bandhan Konnagar was formed in 2001 as a nongovernmental organisation NGO providing microfinance services to socially and economically disadvantaged women in rural West Bengal. Bandhan Financial Services BFSL started its microfinance business in 2006 and the NGO transferred its microfinance business to BFSL in 2009 and thereby the entire microfinance business was undertaken by BFSL. By the time BFSL transferred its microfinance business to the bank it was Indias largest microfinance company by number of customers and size of loan portfolio. Bandhan Bank Limited was incorporated as on December 23 2014 at Kolkata West Bengal as a public limited company. A licence authorising the Bank to carry on banking business was issued by the RBI in terms of Section 22 of the Banking Regulation Act on June 17 2015.The Bank began operations on August 23 2015 when Bandhan Financial Services Limited BFSL its ultimate parent company transferred its entire micro finance business to the bank and the bank simultaneously commenced general banking activities. To complement the micro loan business since obtaining its banking license it has also focused particularly on creating a strong general banking business. To this end it launched the general banking business on August 23 2015 by opening a Greenfield network of 501 bank branches and 50 automated teller machines ATMs.In 2016 Bandhan Bank expanded its branch and doorstep service centers DSC network to 656 branches and 2022 DSCs. In 2017 the bank expanded its branch and DSC network to 840 branches and 2546 DSCs.Bandhan Bank launched an initial public offer IPO during the period from 15 March 2018 to 19 March 2018. The IPO was a combination of fresh issue of 9.76 crore shares and an Offer for Sale of 2.16 crore shares from selling shareholders. The IPO was priced at Rs 375 per share. The stock debuted at Rs 485 on BSE on 27 March 2018 a premium of 29.33 over the IPO price. On 28 September 2018 Bandhan Bank informed the stock exchanges that since the bank was not able to bring down the shareholding of Non Operative Financial Holding Company NOFHC to 40 percent as required under the licensing condition general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD CEO of the Bank stands frozen at the existing level till further notice. Bandhan Bank said in a statement that it is taking necessary steps to comply with the licensing condition to bring down the shareholding of NOFHC in the Bank to 40 percent and shall continue to engage with RBI in this behalf.On 12 October 2018 Bandhan Bank informed the stock exchanges that the bank has received an exemption from the Securities and Exchange Board of India with respect to i lockin of one year on the equity shares held by the promoter and ii eligibility condition of one year from listing as required under regulations 36b and 82b of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations 2009 respectively in order to comply with the requirements of RBI Licensing Guidelines for Private Sector Banks issued on February 22 2013.During FY 201819 the Reserve Bank of India vide its letter dated September 19 2018 has imposed two restrictions on the Bank one is withdrawal of general permission to open new branches whereby the Bank is not permitted to open new branches without the prior approval of the RBI and the other is freezing of remuneration of the MD CEO at the existing level due to noncompliance of one licensing condition of dilution of excess shareholding of Nonoperative Financial Holding Company NOFHC in the Bank to 40 of the paidup capital of the Bank within three years from the commencement of the operations of the Bank. The Bank has taken initiatives to comply with the only remaining licensing condition and in that regard amalgamation of GRUH Finance Limited into and with the Bank has been approved by the Board by which the existing shareholding of NOFHC in the Bank will be brought down to 61 approx.. The Bank along with NOFHC has also initiated several other steps to comply with the only remaining licensing condition at the earliest. The Bank is constantly in touch with the RBI on the matter.During FY 201718 the Bank forayed into the gold loan business by commencing gold loan operations at 57 branches in eastern India. The number of these branches increased to 60 in the FY 201819. On March 31 2019 the Banks outstanding gold loan book stood at Rs 128.28 crore from 22619 customers.During the year 2019 the Bank set up 50 new branches and 21 new ATMs. As on 31 March 2019 the Bank has 986 Branches 3014 DSCs and 481 ATMs.During the FY2019 total deposits grew by 27.64 to Rs 43231.62 crore of which Rs 17617.73 crore 40.75 was Current Account and Savings Account CASA deposits. Bandhan Bank was declared as the winner in the Noteworthy Lender to the MSE Private Sector Bank category at the SIDBI ET MSE Awards 2018 held on January 2019. Bandhan Bank received the award in Best Performing Bank in terms of Aadhaar generation and update using online client at the Aadhaar Excellence Awards in October 2018. The bank also won the Emerging Company of the Year at The Economic Times Awards 2019 for Corporate Excellence. Also won Fastest Growing Company and Excellence in Business Performance at The Economic Times Bengal Corporate Awards 2020.The Bank has set up 32 new branches 332 new Banking Units and 4 ATMs and as a result the branch distribution network went up to 1018 branches and 485 ATMs in FY 201920.With the expanding network of banking outlets and customers the total deposits increased from Rs 43231.62 crore as on 31 March 2019 to Rs 57081.50 crore as on 31 March 2020 registering an increase of 32.04.The outbreak of COVID19 pandemic across the globe and in India has contributed to a significant decline and volatility in the global and Indian financial markets and slowdown in the economic activities. The RBI on March 27 2020 April 17 2020 and May 23 2020 announced COVID19 Regulatory Package on asset classification and provisioning. In terms of these RBI guidelines the lending institutions have been permitted to grant an effective moratorium of six months on payment of all instalments/interest as applicable falling due between March 1 2020 and August 31 2020 moratorium period. As at 30 June 2020 the total number of Branches Banking Units and ATM network stood at 1018 3541 and 485 respectively. As at 30 September 2020 the total number of Branches Banking Units and ATM network stood at 1045 3656 and 487 respectively. As at 31 Decemeber 2020 the total number of Branches Banking Units and ATM network stood at 1107 4090 and 487 respectively. Total Banking outlets as on 31 March 2021 stood at 5310. The network consists of 1147 branches 4163 banking units as against 1018 branches and 3541 banking units as on 31 March 2020. The Total number of ATMs stood at 487 as on 31 March 2021 against 485 as on 31 March 2020.During the FY2021the Total Deposits increased by 36.6 to Rs 77972.2 crore as on 31 March 2021 as compared to Rs 57081.5 crore as on 31 March 2020.
OrganisationBandhan Bank Ltd
HeadquartersKolkata
IndustryBanks