Bandhan bank Limited Ipo

About Company

Incorporated in 2014, Bandhan Bank Limited is Kolkata, West Bengal based commercial bank focused on micro banking and general banking services. Bandhan Bank has a license to provide banking services pan-India across customer segments. Bank offer a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and services to generate non-interest income.

With the a network of 2,546 doorstep service centres (DSCs) and 9.47 million micro loan customers, the bank has strong very hold in microfinance. Bandhan bank has 864 bank branches and 386 ATMs serving over 1.87 million general banking customers. Banks distribution network is strong in East and Northeast India, with West Bengal, Assam and Bihar.

Bandhan Bank Products:

1.       Retail loans including micro loans, SME loans and small enterprise loans.

2.       Savings accounts, current accounts and a variety of fixed deposit accounts.

3.       Other banking products and services including debit cards, internet banking, mobile banking, EDC-POS terminals, online bill payment services and the distribution of third-party general insurance products and mutual fund products.

Bandhan Bank Strengths:

1.       Operating Model Focused on Serving Underbanked and Underpenetrated Markets (microfinance).

2.       Consistent Track Record of Growing a Quality Asset and Liability Franchise.

3.       Extensive, Low Cost Distribution Network.

4.       Provide accessible, simple, cost-effective and innovative financial solutions.

5.       Robust Capital Base

6.       Maintaining focus on micro lending while expanding further into other retail and SME lending.

Company Promoters:

The Promoters of the Bank are BFHL, BFSL, FIT and NEFIT.

1.       Bandhan Financial Services Private Limited (BFSL) is a non-banking financial institution for purposes of carrying out non-banking financial activities without accepting public deposits.

2.       BFSL was accorded in-principle approval by the RBI on April 9, 2014 for setting up a bank in the private sector. The promoter of BFHL is BFSL.

3.       FIT is an irrevocable charitable trust with objectives including inter alia eliminating functional illiteracy in India by making education economically relevant.

4.       NEFIT is an an irrevocable charitable trust with objectives including inter alia eliminating illiteracy in India by making education available to the underprivileged.

Company Promoters

1.       BANDHAN FINANCIAL HOLDINGS LIMITED

2.       BANDHAN FINANCIAL SERVICES LIMITED

3.       FINANCIAL INCLUSION TRUST

4.       NORTH EAST FINANCIAL INCLUSION TRUST

Company financial

(Rs in millions)

Registrar to the issue

1.      Karvy computershare Private Limited

Lead Managers

1.       Kotak Mahindra Capital Company Limited

2.       Axis Capital Limited

3.       Goldman Sachs (India) Securities Private Limited

4.       JM Financial Institutional Securities Limited

5.       J.P. Morgan India Private Limited

Objects of the Issue:

The Issue comprises of a Fresh Issue and an Offer for Sale.

Fresh Issue

The object of the fresh issue is to augment Bank's Tier-I capital base to meet Bank's future capital requirements.

Offer for Sale

The Selling Shareholders will be entitled to the respective portion of the proceeds of the Offer for Sale.

Risk factors

1.       This being the first public issue of our Company, there has been no formal market for the Equity Shares.

2.        Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Offer unless they can afford to take the risk of losing their investment.