Bandhan moves one-step closer to becoming India’s first Micro Fin turned full-time Bank. Know how

Bandhan Financial Services has overcome all hurdles and now is waiting for Reserve Bank of India to get final licence.

Raising funds was the last glitch and Bandhan Financial Services overcame it as it raised Rs 1020 crore equity from International Finance Corporation (IFC), Singapore's sovereign wealth fund GIC and Small Industries Development Bank of India.

Chairman and Managing Director Chandra Shekhar Ghosh said that they had received funds and were expected the central bank to issue it the final license.

The latest equity infusion would take Bandhan's net worth to Rs 2,616 crore.

GIC, the first time investor in Bandhan, has invested Rs 640.87 crore while IFC has pumped in Rs 344 crore into Bandhan, India's first microfinance lender to get an in-principle approval to set up a bank. Sidbi has invested Rs 35 crore afresh.

IFC's shareholding in the company will be raised from 10.9%. However, Ghosh did not divulge the latest shareholding structure and Sidbi is also an existing shareholder.

Bandhan Bank is likely to start banking operation with 500-600 branches and 4,000 officials at the branches and the headquarters. There would be more than 10,000 field workers who will make the last mile connection between the new bank and its customers.

After being recognised as a bank, Bandhan will cater to rural and economically weaker segment. It's outstanding loan book now stands at Rs 10,000 crore, Ghosh told the Economic Times.