By IANS,
Kolkata : Bandhan, one of the largest microfinance institutions (MFIs) in India, will apply for banking licence soon after the Reserve Bank of India (RBI) comes up with a new banking licence policy, a top company executive said Monday.
The MFI has recently raised equity worth Rs.135 crore from International Financial Corporation (IFC), the investment unit of the World Bank.
“IFC has put Rs.135 crore equity to Bandhan. The investment will help it to increase its net worth to nearly Rs.650 crore by March 2012. It will also help us to build a world-class governance so that we can get the banking licence,? said Chandra Shekhar Ghosh, Bandhan’s chairman and managing director, here.
“Preparations for the application have been started internally. So after the final guidelines will come, then we will start the work. As per the draft, we feel that we do not need to go for further capital infusion to get licence or applying for the licence. We have a net worth now of Rs.600 crore,? he said.
Stating that if it moves in the right way, then by March 2012 the central bank will seek applications for new banking licences, Ghosh said: “The RBI and the finance ministry are now working on the proposed new banking licence policy. If the final draft comes by December, they will seek applications in March. Three months will be needed for scrutiny.?
Informing that some institutions of Indonesia and Ghana have approached Bandhan to provide technical assistance to them, he said for Indonesia, the joint venture will be with MBK, an MFI,
For Ghana, things have not been finalised yet, Ghosh said.
?We expect that it will need another three months to finalise the joint venture with MBK,? he said.
Bandhan is projected to reach out to 6.5 million customers with a loan book of Rs.5,000 crore maintaining minimum Capital Adequacy Ratio (CAR) of 17 percent.