Bandhan's first year

Can the bank sustain its track record?

Whatever risks the Reserve Bank of India, under the leadership of Raghuram Rajan, may have taken while granting a banking licence to the microfinance institution Bandhan, have been vindicated by its first year’s performance. In a year, Bandhan has been able to garner deposits of Rs 15,500 crore, which nudges its total advances of Rs 16,000 crore. The whole idea of getting a bank licence is to be able to accept deposits so that the organisation does not have to lend out of costly borrowings from banks. By accessing deposits at around seven per cent, Bandhan is able to save more than ...