Bandhan Financial Services, the city-based micro-finance institute that recently obtained an in-principle banking licence, is likely to appoint consultant to facilitate its banking foray.

The appointment is likely to be finalised over the next two weeks, Chandra Shekhar Ghosh, Chairman and Managing Director of Badhan, told Business Line over the phone.

Bandhan and IDFC were amongst the applicants that included the likes of Aditya Birla Nuvo, Bajaj Finserv, Indiabulls and L&T Finance that had applied to the Reserve Bank of India for securing an in-principle banking licence.

“We are talking to various consultancy firms like KPMG, BCG, McKinsey and Ernst & Young, among others. We are likely to finalise a mandate over the next two weeks,” he said.

The consultant’s job would be to ensure the MFI’s transformation into a full-fledged bank, identify gaps and also suggest possible appointment of specialists.

Appointment

According to Ghosh, on getting the suggestions from the consultants, Bandhan will opt for hiring specialists and look to fill gaps in its existing manpower.

“We have some people who have a banking background. Further appointments will depend on the suggestions that we obtain from the consultants and the gaps they identify,” he added.

Hopeful of starting operations over stipulated 18 months, Ghosh said, there was no immediate capital requirement.

Bandhan’s net worth

The regulatory capital requirement to start a new bank was ₹500 crore against which Bandhan’s net worth was ₹1,100 crore.

Currently, Bandhan has over 55 lakh borrowers and around 13,000 employees on its rolls.

It has a loan portfolio of around ₹6,200 crore.

The company has 2,016 branches across 18 States including Bihar, Jharkhand and West Bengal.

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