Kolkata-based microfinance institution (MFI) Bandhan Financial Services plans to appoint a consultant to conduct a feasibility study on a possible foray into the banking sector.
The Chairman and Managing Director of Bandhan, Mr Chandra Shekhar Ghosh, said on Monday that the company was in talks with Ernst and Young and Boston Consulting Group for the same.
The MFI, with a current net worth of Rs 600 crore and a paid-up capital of Rs 96 crore, proposes to apply for a banking licence once the Reserve Bank of India comes out with its final guidelines on new bank licensing.
The draft guidelines for new bank licences released by the RBI recently stipulate a minimum capital requirement of Rs 500 crore. “We are more or less in sync with the norms laid out in the draft guidelines. So we are hopeful of getting a licence,” Mr Ghosh said.
IFC's investment
International Finance Corporation has acquired a little over 10 per cent stake in Bandhan by pumping in equity worth Rs 135 crore. The investment would shore up its net worth to Rs 650 crore by March 2012, Mr Ghosh said.
Technical assistance
Bandhan plans to provide technical assistance to MFIs overseas to earn a fee-based income. “Indonesia-based MFI, MBK Ventura has sought technical support in the form of skilled staff, IT system and product designing.
“We are likely to enter into an agreement with MBK in the next three months. A London-based MFI planning to enter the Ghana market has also asked for our support. We are looking into the offer,” Mr Ghosh said.