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Bandhan may launch banking venture

Bandhan may launch banking venture

Agency report indicates that Bandhan Microfinance plans to foray into banking sector in order to cater to the un-banked and rural areas.

The microfinance institution (MFI) feels that it meets all the criteria specified in the final guidelines released by the Reserve Bank of India (RBI).

Specifically, the MFI has adequate capital to set up a bank. The company also plans to provide remittance facility, which is critical for the poor households, reports suggest.

Meanwhile, in 2012-13, the MFI had disbursed Rs 5,778 crore and it plans to achieve 30 per cent growth in disbursement in the current financial year. In the previous fiscal, it achieved a loan book growth of 20 per cent.

In 2012-13, the company securitised deals worth Rs 355 crore compared to Rs 723 crore in 2011-12. It attributed the decline in securitisation to lower needs for funds as it had a conservative outlook on growth last fiscal along with some changes in the securitisation guidelines.

Based on its future growth plans and banks’ demand, the company would enter into more securitisation deals going forward.

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