Bandhan Bank Share Price and Latest News

Bandhan Bank is India’s first microfinance company which transformed itself into a full fledged bank. Bandhan Bank was founded by Chandra Shekhar Ghosh in 2001 as an NGO inspired by success of the Grameen Bank in neighboring Bangladesh.

In 2006 the NGO acquired the Non Banking Finance Company (NBFC) license of Ganga Niryat Pvt Ltd and transformed itself into a NBFC called Bandhan Financial Services Ltd. Once Bandhan transformed into a NBFC , it saw an enormous growth and reached a loan outstanding of Rs 5000 Crore and a borrower base of more than 50 Lakh by early 2013.

founder of bandhan

As Bandhan had grown enormously, Reserve Bank of India (RBI) decided in April 2014 to give a preliminary license to Bandhan Financial Services so that it can convert itself into a bank. Bandhan was chosen from a group of more than 25 bank license applicants because of it’s outstanding work in microfinance, rural branch network and social mission.

The reason why RBI is issuing new bank licenses in India is that it wants to encourage banks to expand their branch network in the rural areas. Many of India’s leading pvt and public sectors banks are reluctant to do so because of the low profitability of rural branches. It is this gap in the banking service network that RBI want’s Bandhan and other new banks to occupy.

Investors in Bandhan

Bandhan Bank is currently not a listed company on the BSE / NSE, so investors such as the public cannot purchase it’s shares. However the Private Investor community has reposed it’s faith in it’s banking model and it successfully raised Rs 1020 Crore in May 2015 from foreign investors like the IFC and World Bank. The foreign investors have not disclosed at what share price and premium they have invested in Bandhan bank.

bandhan bank logo

Bandhan Bank Begins Operations

With all hurdles cleared, Bandhan Bank formally started operations in August 23, 2015 after more than a year of restructuring, planning and capital raising. Within a month by September 23, 2015, Bandhan Bank had added more than 5 lakh customers taking it’s total customer base to 83 lakhs.This is an incredible feat for a small bank such as Bandhan and has surprised many of the stalwarts of Indian Banking industry.

It began operations with 501 bank branches, the majority of which are in West Bengal and North India and it has also established branches in all the metropolitan cities. Bandhan bank has converted it’s microfinance branches into “Point of Sales” branches and these number more than 2000. Concurrently it has also managed to establish more than 50 ATM’s across the country.

Bandhan Bank Share Price and IPO

Bandhan Bank has announced that it is planning to come out with an Initial Public Offer (IPO) in 2018. As per RBI guidelines all new banks are mandatory required to be listed within 3 years of starting banking operations. Since Bandhan began operations only in August 2015 , you can expect it’s shares to be listed on the stock exchanges before August 2018. When it comes out with an IPO in 2018, the public will be able to acquire it’s shares at a favorable price but it’s share price will be dependent on how it’s business grows in these 3 years.

Future of Bandhan Bank
Bandhan Bank has a capital base of only Rs 3,200 Crore, this is quite low for a new bank. Hence the bank does not plan to immediately start disbursing loans and has instead launched pilot programs of it’s new products and services. It has decided to focus more on deposit taking from it’s existing customer base who were until now, not allowed by regulatory norms to deposit their savings with Bandhan.

In September 2015, RBI granted 10 more special banking licenses called “Small Finance Bank License“. Eight microfinance companies were recipients of this banking license and they are expected to commence their operations next year. This will increase the competition among new banks and could affect the profitability of Bandhan Bank in the long run.

Tensing Rodrigues

Author : 

Tensing started his career as a teacher at graduate level in Economics. He has worked as independent advisor for market research projects and new product launches. He has extensive experience in marketing of financial products and writes about financial inclusion.

    Contact via :
  • facebook
  • twitter
  • googleplus
  • linkedin


  1. Mukesh kumar sharma

    October 16, 2015 at 9:45 pm

    For job in India

  2. Nitesh Parmar

    December 28, 2015 at 5:05 pm

    My name Nitesh Parmar

    i want to work with microfinance companies in my city Nadiad ( dist : kheda , state : Gujrat )

    i have lots of contacts
    & i known communities who need financial help for business purpose

    my number is

    : +917383895237

    i also can open microfinance branch in my city
    if any companies interested..
    contact early…


  3. pinki

    March 3, 2016 at 3:49 pm

    add your bank in share market

  4. Samiran Ray

    March 27, 2016 at 3:24 pm

    How safe is it to keep money with Bandhan Bank?

  5. Abhay N

    Abhay N

    March 27, 2016 at 4:43 pm

    It is quite safe, because your deposits are guaranteed by the Reserve Bank of India up to a limit of Rs 1 Lakh per bank account. Above that they will have insurance. It is not another Saradha…

  6. v n kamalapuri

    March 29, 2016 at 8:11 pm

    If u wish to open your branch in Tirupati, I may of some use as I have worked in SBI for about 25 years in different capacities in Tirupati.

  7. a l das

    May 17, 2016 at 1:55 pm

    I would like to offer 3 Katha land near 2 no B.D.O Ranaghat Dwarikanagar village for opening your bank branch. The villagers living near my land want to open a bank account with Bandhan.

  8. Bharat

    July 24, 2016 at 7:29 pm

    I want to purchase shares of Bandhan Bank . Plz guide ,will it be safe . And when Bandhan Bank shares will come into Market

  9. Abhay N

    Abhay N

    July 26, 2016 at 11:30 am

    Hello Bharat

    The shares of Bandhan Bank will be listed after two years. Then you can purchase it from the open market.
    Bandhan Bank is currently privately held.



  10. kuldeep singh

    July 29, 2016 at 7:48 pm

    I want to join& open microfinance compny branch in -beawar city district-ajmer& pali I am working now with community which need financial help for start their business & education for their children so please contact with me on mobile.

  11. Raghuveer

    October 9, 2016 at 7:28 pm

    i have 6 years of exp in manappuram. is there any opportunity to join in bandhan bank. i worked in indias biggest branch in manappuram. i handle very well.

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top