We are Bandhan Bank Limited

Bandhan Bank is focussed on serving the unbanked and underbanked

population of India. It offers world-class banking solutions and financial
services in the form of asset and liability products and services. It offers
regular banking services, microfinance, MSME, and affordable housing
finance to urban, semi-urban and rural customers. It works on the
ethos of bringing those outside the purview of India’s formal banking
marketplace within the ecosystem.

The Bank has so far mobilised deposits worth C43,232 crore. Its outstanding loan book stands at C44,776 crore. It has 4,481
physical touchpoints pan-India which includes 986 branches, 3,014 Doorstep Service Centres (DSC) and 481 ATMs. Through this
ecosystem, it serves more than 1.65 crore customers across India.

Bandhan Bank is a subsidiary of Bandhan Financial Holdings Limited (BFHL). BFHL is a wholly-owned subsidiary of Bandhan
Financial Services Limited (BFSL). BFSL’s public shareholders include International Finance Corporation (IFC), IFC FIG Investment
Company,
Small Industries Development Bank of India (SIDBI) and Caladium Investment Pte Ltd., a company managed by GIC Special Investments
Private Limited.

Vision
Values
To Ourbe values
a world-class
are anchored bank
aroundfor
our business ethics, consumer focus and corporate responsib
convenient and affordable financial
solutions to all, in an inclusive and
sustainable manner.

Mission
To provide our customers accessible,
C Cost-effective
and simple

simple, cost-effective and innovative Respect

financial solutions in a courteous and
responsible manner. To create value for all
REATE for all

Exemplary
stakeholders through a committed team, governance
robust policies and superior systems
and technology. Accountability, professionalism and discipline

Transparency
and integrity

Effective teamwork
and commitment

2
 All figures mentioned in this report are as on March 31, 2019.

Focussed on serving the unbanked

36% 35% 19% 10%

Rural Semi-Urban Urban Metro

Key Highlights

986 3,01 481

4
Branches ATMs

DSCs

1.65 crore 34
States &
463
Districts
Customers
UTs

How We Performed

D43,232 crore D44,776 crore 86.24 %

Total Deposits Total Loans and Advances* Microloans among
all assets

40.75 % 4.23 %
19.00
ROAE
%

CASA Ratio ROAA

Of the total deposits, 7% is from micro banking customers *On book + Off book
Corporate Overview
Our Financial
Scorecard

Our Financial Scorecard

Total Business (C in crore)
Advances (C in crore) Deposits (C in crore)

CAGR 37.17% CAGR 37.91%

88,008
44,776

CAGR 36.42%
66,208

32,339 43,232

46,772
23,543 33,869

23,229
FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19
17 17 17

Business Mix in FY 2018-19 CASA CASA Ratio

Assets (%)
4.21
6.21
3.34
Microloans 643 bps
CAGR 60.53%
Small enterprise 489 bps
17,618
loans
40.75
SME loans
86.24
Other retail loans 34.32

29.43
Liabilities (%) 11,624
8.35
59.25

Term Deposit
6,837
Savings

Account

Current Account

32.40 FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19

17 17
4
Annual Report 2018-
19

5
Net Worth (C in crore) Total Income* (C in crore) Profit After Tax (C in crore)

CAGR 58.71%
11,202

9,382

CAGR 40.53%
5,559 CAGR 32.49%
1,952

4,447 3,738
1,346

2,815 1,112
FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19
17 17 17

*Net of Interest expenses

Capital Adequacy Ratio Net Interest Margin Cost to Income Ratio (%)
(%) (%)

(131) bps
(228) bps 74 bps (242) bps
512 bps
(75) bps

31.48 10.44 10.43

29.20 9.69

26.36
FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19
17 17 17
Gross & Net NPA (%) Branches

986
936

840

2.04

1.25

0.51 0.58 0.58

0. 36

FY 16- FY 17-18 FY 18-19 FY 16- FY 17-18 FY 18-19

17 17

Gross NPA Net NPA

DSCs Customer Base (crore)

1.65

3,014
1.30
2,764

2,443 1.05
FY 16-17 FY 17-18 FY 18-19 FY 16-17 FY 17-18 FY 18-19
 Key Milestones

2018
Emerged as the
8th most valued
bank on the day
of listing itself,
basis market
capitalisation
2015

Bandhan received
the universal
banking licence from
the RBI on June 17 Bandhan Bank
initiated acquisition
of Gruh Finance,
2009 HDFC Ltd.’s
subsidiary

Microfinance
portfolio
transferred from
NGO to NBFC 2019

2001 Bandhan Bank

started operations
on August 23

Bandhan
conceptualised;
commenced
microfinance 2015
activities as an NGO
in rural Bengal Bandhan
recognised as
the largest
MFI in the
country

2010
Acquired an
NBFC to carry
on microfinance
activities

2006
Building on a Legacy of Trust
Bandhan Bank is indeed the story of hope. From its humble beginning
in 2001 as a not-for-profit microfinance organisation to its second
avatar of a non-banking finance company, and finally, its
transformation into a Universal Bank, it is the story of touching the
lives of millions of people. It is the story of ensuring no one is denied
the right to build a sustainable livelihood for herself.

The Humble Beginning The Logical Step

Bandhan-Konnagar commenced its In April 2014, Bandhan received an
journey as a not-for-profit organisation in-principle approval for setting up
in 2001, with a modest capital of C2 a
lakh. The ignition was the plight of universal bank. On June 17, 2015,
poverty- stricken women in the rural Chandra Shekhar Ghosh walked out of the
villages of West Bengal. Its goal was to Reserve Bank of India’s Mumbai office
empower these rural women with with the coveted universal banking
microcredit. It aimed to help them build licence. Two months later, on August 23,
sustainable livelihoods for themselves, Bandhan Bank commenced operations
thus bringing them out of poverty. with 501 bank branches, 2,022 DSCs and
an asset base
The Evolution of C10,500 crore. Its public shareholders
Bandhan-Konnagar kick-started its then included International Finance
innovative trickle-up approach to poverty Corporation; an arm of GIC, the sovereign
alleviation by offering small loans. These wealth fund of Singapore; and Small
loans, which were as less as C1,000, were Industries Development Bank of India.
given to the economically weaker
sections in Kolkata’s suburban Konnagar The Big Leap
town and the nearby Bagnan area. Today, within a span of three and a
Chandra Shekhar Ghosh, the Founder of half years of operations, the Bank has
Bandhan-Konnagar and now the MD & a customer base of 1.65 crore. It has
CEO of Bandhan Bank, travelled to small expanded its loan book to C44,776 crore,
villages across West Bengal to serve and mobilised C43,232 crore as deposits
those at the bottom of the socio-economic through its network of 986 branches,
pyramid. Bandhan’s loans enabled that 3,014 DSCs and 481 ATMs. It provides
strata of the society to help them avoid all the basic services of a universal bank
turning to moneylenders and paying to India’s unbanked population through
exorbitant rates of interest. In 2006, an its “brick-and-mortar” banking. With
NBFC was acquired and later, in 2009, this,
the entire microfinance portfolio was it gets them integrated into the formal
transferred to the NBFC, Bandhan banking system. The Bank continues
Financial Services Limited. In 2010, providing microcredit to small
Bandhan became the largest microfinance borrowers, who often lack any credit
company in the country. history.

First First
MFI to receive a Bank to be set up in
universal banking eastern India post-
licence Independence

8
 Annual Report 2018-19

Numbers that Define Bandhan Bank

4,000 71% 32,342

Total Banking
Distribution Network in Number of Employees on payrolls
Outlets
Rural and Semi-Urban Areas

31,973
Employees were trained in general 3,50,000 km
banking and micro banking Distance physically travelled by
employees every single day to meet
their customers (Distance from
Earth to Moon is 3.8 lakh km)

3,000+
Microloans disbursed on an 99.28% 77.36%
average every hour
On-Time Repayment Retail to Total Deposits
Rates

9
Our Growing Presence

Our Growing Presence

As we keep expanding our physical presence across India, our
singular aim is to provide last-mile connectivity to our customers. We
are growing our customer base through the existing network. We are
also reaching out to newer geographies and customers by opening
new banking outlets – DSCs, bank branches and ATMs.

10
 Grand Total

986
No. of Bank branches

Jammu & Kashmir

3,014 No. of DSCs

2 1
2
Himachal
Chandigarh Pradesh
14 24

Punjab 12 22
21 20
Uttarakhand
14 34 National Capital Territory 1
Haryana (NCT) of Delhi
Arunachal
Pradesh
1 6
20 79
65 274 Sikkim
73 346
Rajasthan Uttar Pradesh 2 8
85 368 1 7 Assam
Nagaland
Bihar Meghalaya
2 6
23 89 Manipur
25 84
37 84 38 168 Tripura
369 928 2 5
Jharkhand
Gujarat Madhya Pradesh West Bengal Mizoram
22 56

Chhattisgarh
1 1 33 132

Dadra & Odisha

54 151
Nagar Haveli
Maharashtra
9 10

Telangana

2 4

Goa
3 6
23 53

Karnataka Andhra
Pradesh

1 4
1
18 44 Puducherry
Andaman & Nicobar Islands
9 Tamil Nadu

Kerala

15% 11% 6% 17%

14%
14%
51% 10% 38% 13%
8%
6% ATMs 12%
Branches Central South
East North-EastCentral
EastNorth-East
West NorthSouth
WestNorth
 17%
51%
8%
Doorstep Service 5%
Centres 4%
East North-East Central
West North South
Chairman’s Message

Chairman’s Message
income borrowers and depositors in
rural and semi-urban India. We
maintain our strategic focus on
customers who otherwise lack any
access to the formal financial
marketplace. In doing so, we also put
our forces to work in the urban centres
to draw deposits for retail customers.

Points of Differentiation
Empowering the unbanked and
underbanked, and thereby building the
nation and contributing to its growth and
development, has been and continues
to be our raison d’être. Not only are we
conducting our routine operations but
also simultaneously creating huge value
for society. So far, through our
microloans aimed at creating sustainable
livelihood, we have catalysed the
development of millions of entrepreneurs
who, in turn, have generated more jobs
by way of
a ripple effect leading to inclusive and
sustainable growth.

Further, it is our keen understanding

of this set of customers and their
financial requirements that helps us
serve them better and also keep our
delinquency levels low. Besides
financial assistance, your Bank also
participates in a number of
Dear Shareholders, development oriented programmes
targeted at the not-so-
privileged sections of the society.
It is with a great sense of satisfaction Through our implementation partners, we
that we present to you our Annual run programmes aimed at poverty
alleviation, health improvement,
Report for FY 2018-19. employment generation and sanitation,
among others.

Industry Performance
Despite being independent for the past Your Bank has been founded with a The banking industry was at a crossroads
seven decades, a large majority of the conscious mission to transform the lives during the year 2018-19. While it
Indian populace lives under the pressure of its customers by enabling them with continued to support India’s economic
of financial coercion, which is mainly access to banking and financial services, growth, it also grappled with challenges
due to lack of proper access to the formal thereby furthering financial inclusion that tested its strength and resilience.
banking system. A key factor driving the and last-mile delivery of banking The fag-end of the year witnessed some
growth of the nation is mobilisation of services. stability seeping into India’s banking
formal financial resources at the grass- Your Bank has built the reputation of industry. The central bank’s cutting of
roots level. This is where your Bank is being a responsible bank with a pan- rates during its policy meetings also
committed to make a difference, and also India presence and multi-product injected liquidity in the system.
contribute to improving the lives of those delivery capability. However, our Additional capital infusion is also likely to
who have no or limited access to banks. overarching ambition remains to enable help in meeting minimum capital norms.
financial literacy and financial liberation
to low
 Private Banks built their assets and And as we remain poised to achieve this,
increasingly focussed on the liability we are strategically improving our reach
franchise too. Further, prudent expansion to an increased population of India. By
and focus, coupled with better products catering to all the segments – microcredit,
and interest rates, aided private sector banking, affordable housing and MSME
banks and helped them gain market share credit – we continue our journey towards
across geographies. They also reported being a “bank for all”.
robust growth in credit in urban and
rural markets, as against Conclusion
overall industry growth. Moving forward, your Bank will look to
expand, growing its portfolio of products,
Connecting to Society and prudently expanding geographic reach
Even as the banking sector performed to create greater market impact. Our
well, rural India has clearly been the diversified teams and a well-entrenched
“missing piece” in India’s banking distribution network, keeps us poised to
landscape. There is a definite need for meet our customers’ aspirations, and that of
banking services to be expanded in other stakeholders. This, along with an
India’s hinterlands to include those who experienced and capable management,
are economically weaker and do not enables us to grow at a healthy pace.
come under the purview of the formal
financial marketplace. At Bandhan Bank, Finally, I would like to mention that it
we continue our commitment to develop has been a real privilege for me to serve
and provide sustainable and scalable you all as your Bank’s Chairman. I
banking and financial solutions to remain confident that the Board, and all
millions of unbanked people. the 32,000 plus employees will continue
to work with dedication.
Your Bank’s principle of work underpins
how we create a wide-scale impact on the In doing all that we do, your Bank
broad stakeholders of society – country, will never deter from its core belief-
local communities and people (customers Aapka Bhala, Sabki Bhalai.
and employees alike). Our key mission is
to touch the lives of our customers who Regards,
belong to the underserved households
by providing them the required access Dr. Anup Kumar Sinha
to banking and financial services and
resulting in their inclusive growth.

Strategic Priorities
Through our services in general
banking as well as micro banking, we
Private Banks built their assets and encourage people to gain confidence
increasingly focussed on the liability and enjoy better customer service. We
franchise too. Further, prudent empower them to take control of their
own economic destiny. Our objective
expansion and focus, coupled with
is simple – reaching out to more and
better products and interest rates, more customers at the bottom of the
aided private sector banks and pyramid while driving low-cost
helped them gain market share deposits from all centres; and in doing
across geographies. so, never
compromising on the quality of business.
Corporate Overview
MD & CEO’s Message

MD & CEO’s Message

Furthering Last-Mile Banking
‘Bandhan’ means ‘bond’. Our vision is
to be a bank that connects with all those
who need access to formal financial
services. We recognise and own our
responsibilities towards those outside
the purview of India’s formal banking
system. With a formidable network of
banking outlets in rural India, we play
a complementary role in fulfilling the
national priority of promoting financial
inclusion for the economically weaker
sections. Our general banking and micro
banking services empower them to
start their own businesses and build
sustainable livelihoods for themselves.
It is our understanding of this set of
customers and our one-to-one connect
with each of them that helps us build
relationships and deliver growth. As
we grow as a universal bank, our core
purpose will remain steady, acting as
a guiding light to our future course of
action.

What truly sets your Bank apart is the all-

pervasive impact it creates on customers
through its general banking and micro
Dear Shareholders, banking services. Customer service, in
fact, has been a strong differentiator
We are happy to connect with you yet again for your Bank. Through 3,014 Doorstep
Service Centres (DSC), 986 branches
through our Annual Report for FY 2018-19. and 481 ATMs spread across 34 states
and union territories, your Bank reaches
For the last three and a half years, Bandhan out to a large cross section of this
country.
Bank has shown character and courage in Around 71% of the branches/DSCs
surging ahead in the banking space. The are in rural and semi-urban areas,
thus furthering the objective of
past year, as well, has seen significant financial inclusion.

progress for your Bank, with noteworthy While your Bank has 4,000
establishments in terms of DSCs and
advancements in terms of scale of branches, what gives us reach is the
model of operations where our staff
operations, customer base, portfolio, members travel miles every day to reach
employee base and capabilities.
Your Bank’s asset quality, loyal customer During the year, we continued to be out to customers at their locations.
base, strong capitalisation, and a highly guided by the Bank’s core values – the We go the distance to further last-mile
experienced management team make it foundation upon which the Bank has been banking, take the Bank to the customer
an outlier in the banking segment. We built. We demonstrate these values in a and build a special relationship with each
see immense market potential with rising variety of ways, including our of them. You will be happy to note an
penetration, increasing average loan size, commitment to transform lives, which is interesting piece of trivia. All employees
existing low credit penetration and the deeply embedded in our culture. Going by at Bandhan Bank put together travel
opportunity for faster growth. these values, we operate responsibly, approximately 3.5 lakh km per day to
execute with excellence and conduct reach out to customers. This is almost the
Your Bank stands strong in its business distance from Earth to the Moon!
commitment in a socially and
to the unserved and underserved sections. environmentally responsible
manner.

14
Operational and Financial Key Developments in the Year cost optimisation and ambition, both
Performance companies echo each other.
RBI’s Restrictions
This year marked an inflection point for
Bandhan Bank. During the year, our core In September 2018, RBI imposed two This merger will also help in bringing
restrictions upon your Bank. One was that the stake of the Non-Operative
business of general banking and micro
the Bank would have to take prior Financial Holding Company (NOFHC)
banking products and services,
approval of the RBI to open new to 61% from
particularly in Retail including CASA,
branches and the other stated that the 82%, a reduction that is in the direction of
continued its stellar performance. Our
remuneration of resolving the restrictions imposed by the
total business grew by 32.9% at C88,008
the MD & CEO would stand frozen at the RBI in September 2018.
crore, while
net profit stood at C1,952 crore, higher current level. The former could have had The RBI, Stock Exchanges and the
by 45% over the previous year. Our an impact on how your Bank would go Competition Commission of India
capital adequacy ratio for the year was a about business as usual. However, I am (CCI) have already granted their
healthy 29.2%. happy to share, as the results also prove, approval
there hasn’t been any adverse impact on on the merger. The Bank has also
Your Bank has been able to further last- your Bank. In fact, each time we applied applied for approval of the
mile banking by significantly increasing for opening of new branches to the RBI, amalgamation to
the number of customers it serves. The we received their nod. We received the Hon’ble National Company Law
total number of customers stood at 1.65 approvals for 65 new branch openings of Tribunal (NCLT).
crore, up by 26.9% over the previous year. which we opened 48 in the last financial
What helped acquire more customers and year. The balance will be opened in the Moving Ahead
serve the existing base is the extensive first quarter of FY 2019-20. Today, we are a differentiated bank with
network your Bank has built. We added an impeccable asset quality, low NPA,
50 bank branches and 250 DSCs during Bandhan Bank – Gruh Finance high return on assets and net interest
the year, resulting in a total of 986 bank Merger margin, and a strong capital adequacy.
branches and 3,014 DSCs by the year end. We will strive to maintain the growth and
While your Bank grows organically at a
We are now “4,000 banking outlets quality of assets, with a continued focus
commendable rate in the segments that
strong” with a presence in 34 states and on deposit and CASA accretion and also
it operates in, we also evaluate avenues
union territories. keep our costs under control.
for future growth from other segments.
We have been providing credit to the Growth Frontiers
We displayed stellar growth in our
advances at C44,776 crore, which was not-so-privileged segment for almost two In India, a lot needs to be done in the rural
38.5% higher as compared to the previous decades. Since August 2015, we have areas to bank the unbanked population,
also offered savings accounts and fixed and our aim is to continue to serve this
year. Group-based lending model and
sound risk management led to robust asset deposits services to our micro borrowers. segment by providing them with access
quality. We registered on-time repayment The next logical movement was to help to banking. In terms of key focus areas,
rate of over 99% for most of the financial them with the finances to afford their own MSMEs will be one segment
year and our gross NPA is a low 2.04%. homes. This is where we believed that considering the potential and the lack of
affordable housing should be our next penetration of credit in this segment.
A continued focus led our liabilities base strategic direction. A recent government Retail banking segment will also be a
to grow to C43,232 crore by the end of declaration stated that there is demand for key area of focus as we see healthy
FY2019. There was robust traction in two crore housing units in the affordable traction, given the vast unbanked and
CASA at C17,618 crore, which translates segment and so far only a small untapped customer base, particularly in
to a CASA ratio of 40.75%. Keeping a percentage of that has been provided for. rural areas.
close watch on costs further lowered our Looking at the potential and the promise
Your Bank is fortunate and happy to
cost to income ratio to 32.58%. In terms of this line of business, we decided it was
have earned people’s immense love and
of retail deposit growth, Central, West time for us to commit to it.
respect over the years. According to me,
and East India led the way with 45%, 41% earning people’s good wishes is the most
and 39% growth respectively. Also, of all Gruh Finance is a formidable force
in the affordable housing segment in important achievement. We do, though,
the understand that we still have a long way
India. On close evaluation, we
total liabilities, only 7% is from micro to go. We are scaling higher by
found
banking customers. expanding our presence in all the four
complementarities in the two businesses
corners of India, tapping business growth
A major factor in the success of your Bank as well as certain commonalities. Their
in branch network and doorstep service
is the employee force that runs the Bank geographies of strength are where we
centres.
every day. We added 4,183 more employees are still building our strength. Similarly,
to the Bank in the year. The passion and the geographies in which we command We remain committed to running our
dedication with which the employees work a leadership position, they are not well Bank the right way. We strive to build
to make Bandhan Bank a bank for all is the entrenched. Gruh is a monoline business relationships and make investments that
reason why we are the talk of the town. In whereas Bandhan Bank is a full-fledged unlock potential for progress and
many discussions with customers, I am told universal bank. Our assets are primarily prosperity. These are just some of the
that the courteous service that they get at short term whereas they have only ways in which we are demonstrating
Bandhan Bank is what brings them back to long term assets. In terms of target our commitment to our customers.
the Bank each time. All this, is thanks to the segment, organisation culture, focus on Thanking you,
committed staff.
Warm regards,
Chandra Shekhar Ghosh
Corporate Overview
A Diverse and Effective
Board

A Diverse and Effective Board

Dr. Anup Kumar Sinha Mr. Chandra Shekhar Ghosh Mr. Harun Rasid Khan
Non-Executive (Independent) Chairman Managing Director & Chief Executive Independent Director
Officer
Dr. Sinha, an economist of repute, is Mr. Khan is currently a Senior
currently the Director of Heritage Business Mr. Ghosh has been one of foremost Adviser (part-time) with KPMG
School and an Insurance Regulatory and proponents of microfinance in India. He India and
Development Authority of India (IRDAI) has more than 30 years of experience in the Non-Executive Chairman of National
representative on the Life Insurance microfinance and development terrain. He Securities Clearing Corporation Limited.
Council of India. founded Bandhan in 2001 as a not-for-
profit enterprise that stood for financial He retired as the senior Deputy Governor of
He was on the Board of the National Bank inclusion and women empowerment the Reserve Bank of India (RBI) in July
for Agriculture and Rural Development through sustainable livelihood creation. He 2016, after nearly 38 years of service. At
(NABARD). He served three terms on the was on the forefront of its transformation RBI, he handled diverse areas and
Board of Governors at Indian Institute of into an NBFC-MFI and finally a universal spearheaded major projects relating to
Management–Calcutta (IIMC) and was bank in August 2015. financial markets, payment and settlement
also the Dean from 2003-06. He was a systems, financial inclusion, foreign
Professor of Economics at IIMC for 25 Mr. Ghosh has been appointed as the exchange management and, banking
years. Chairman, Confederation of Indian Industry regulation and supervision.
(CII), Eastern Region, apart from holding the He was instrumental in the formulation
Dr. Sinha holds a Ph.D. in Economics Chairman position of CII’s Economic of the RBI’s Payment System Vision
from the University of Southern Affairs, Finance & Taxation Committee. He 2018. He has overseen some of their
California, Los Angeles and M.S. in also Co- Chairs the Financial Inclusion major projects like establishment of
Economics, University of Rochester, Committee of Federation of Indian CCIL, Core
USA. He has been actively engaged in Chambers of Commerce and Industry Banking Solutions, revamping of NEFT and
training and consulting for a number of (FICCI). He is the Past President of the introduction of UPI for retail payment.
organisations in the public and private Bengal Chamber of Commerce and Industry
sector, as well as for international agencies (BCC&I). Mr. Ghosh was elected as ‘Senior An M.Phil. from Jawaharlal Nehru
in the fields of economics. He has also Ashoka Fellow’ in 2007 by Ashoka University and a PGDM graduate from
authored publications on various topics Foundation (social entrepreneurship award). Narsee Monjee Institute of Management
including economics, rural economy and Studies, he has been the nominee Director
management. An M.Sc. in Statistics, he also attended of RBI on the Board of several top Indian
the HBS-ACCION programme on banks.
Strategic Leadership at Harvard Business
School in April 2006.

16
 Limited and SBI DFHI Limited. He has
been associated in the audits of large public
sector undertakings, public and private
limited companies, nationalised and
scheduled banks, NBFCs, Life Insurance
Corporation of India and co-operative banks.
He rendered consultancy services to public
sector banks in the areas of turnaround
strategies, restructuring, takeover,
investigation
among others.
Mr. Bhaskar Sen Mr. Dixit is a Senior Partner at GD Apte Dr. Allamraju Subramanyu
Independent Director & Co., Chartered Accountants, and has Ramasastri
over 38 years of professional experience Additional Director (Independent)
Mr. Sen retired as the Chairman and in finance and accountancy sector. He was
Managing Director (CMD) of United on the Boards of Dena Bank, Indian Bank Dr. Ramasastri is presently the Director of
Bank of India. During his tenure as and Hindustan Antibiotics Limited. Institute for Development and Research in
CMD, United Bank of India got listed Banking Technology (IDRBT). He is also on
and went through a major transition, the Boards of IDBI Intech Limited, Data
particularly in the areas of systems, Security Council of India, Indian Financial
processes and corporate Technology and Allied Services and Indian
governance. He also served as the Institute of Banking and Finance.
Executive Director of Dena Bank where he
He was the Chief General Manager-in-
took major initiatives in IT and put the
charge of Department of Information
Bank on a robust CBS platform.
Technology
He started his career as Probationary at the RBI where he spearheaded significant
Officer with Union Bank of India in the projects including the implementation of the
Next Generation RTGS, adoption of XBRL
year 1974 and went on to become the
and ISO 20022, and preparation of IT
General Manager. During his stint there, he
Vision of RBI for 2011-17.
handled General Banking, Rural Banking,
treasury functions and overseas expansion. Mr. Ranodeb Roy He guided Bank of Mauritius,
He was also on the Board of FIMMDA, Non-Executive Non-Independent Director Bank of Malaysia and Bank of
National Insurance Company Limited, Uganda on
Industrial Investment Board of India (as Mr. Roy is the co-founder and CEO of implementation of Data Warehouse and
CMD) and West Bengal Financial RV Capital Management Private XBRL. At the International Monetary Fund
Corporation. He was also the Deputy Limited, an asset management company and Bank of International Settlements, he
Chairman of Indian Banks’ based in Singapore that he founded in delivered talks on standards and technology
Association (IBA), Mumbai. Mr. Sen is an November 2011. for data reporting. He has authored two
honours graduate from University of books titled ‘Quantitative Methods for
Calcutta and a CAIIB. He started his career with Bank of America Valuation of Assets’ and ‘Quantitative
in 1992 in Mumbai. He has worked at Methods for Banking and Finance’.
Merrill Lynch and at Morgan Stanley (Asia)
Singapore Pte. as a Managing Director in He holds a Ph.D. in Finance from IIT,
the Fixed Income Division. Madras and was a top ranker in M.Sc.
(Statistics), Madras University.
He holds an MBA from IIM, Ahmedabad,
with a major in Finance and Marketing and
a B.Tech. in Computer Science &
Engineering from IIT, Kanpur.

Mr. Chintaman Mahadeo Dixit

Independent Director

Mr. Dixit is on the Boards of SBI

Stock Holding Corporation of India
Limited, GDA Management
Consulting Private
A Diverse and Effective Board
Jaipur as Probationary Officer and
reached the level of Chief Manager,
International Banking. Thereafter, he
moved to Axis Bank as Vice President and
held various positions including that of the
Executive Director (Corporate Affairs),
where he oversaw the functioning of the
human
resources, compliance, internal audit, legal,
corporate communications and corporate
infrastructure departments. He was also the
Head of Human Resources, and the
Dr. Holger Dirk Michaelis Mr. Sisir Kumar Chakrabarti
Chairman of the Audit Committee of
Nominee Director Independent Director
Executives at Axis Bank.
(Caladium Investment Pte. Ltd.)
Mr. Chakrabarti is currently the Independent
Dr. Michaelis is currently a Senior Vice Director on West Bengal State Electricity
President of GIC Private Limited, Distribution Co. Ltd, Merino Industries
overseeing portfolio, strategy and risk Ltd. and Merino Panel Products Ltd.
group. He has extensive experience in
private equity and as a strategic adviser to He retired as Deputy Managing Director of
financial services companies. Axis Bank in 2011 after serving the Bank
in various capacities in several locations
Previously, he was a Partner at the for 17 years. Before joining Axis Bank, he
Boston Consulting Group where he started his career as an officer with State
worked in Germany and China. Bank of Bikaner & Jaipur and worked for
Dr. Michaelis pursued his post-graduation 21 years. He was also a member of
in Committee of
Business Administration (Finance) from Directors of Axis Bank & Chairman of
UT Austin, USA and holds a doctorate Audit Ms. Thekedathumadam Subramani
degree in Economics from WHU Koblenz, Committee of Executives. He was Raji Gain
Germany. Chairman of Axis Sales & Securities Ltd. Independent Director
and Nominee Director of Experian Credit
Information Services Ltd. and Busan Auto Ms. Gain, is currently an Executive
Finance Ltd. He is a graduate with honours Director at Bankers Institute of Rural
in English Literature and a CAIIB. Development (BIRD).

She has significant experience in the field

of agricultural and rural development.
She has worked in various capacities in
NABARD where she was involved in
capacity building and conducted
programmes
on organisational and institutional
development, microfinance, self-help groups,
Mr. Santanu Mukherjee gender and participatory management. She is
Additional Director (Independent) a postgraduate in Agricultural Physics from
Indian Agricultural Research Institute,
Mr. Mukherjee is currently on the Boards New Delhi.
of Suven Life Sciences Limited, Donear
Industries Limited and Bhanix Finance Mr. Snehomoy Bhattacharya
and Investment Limited. Independent Director

He is the former Managing Director of Mr. Bhattacharya has 36 years of

State Bank of Hyderabad. He has around experience in the banking industry of which
four decades of experience in the fields of he spent equal time in the public and
banking, finance and risk management in private sectors. He served as a Director on
various capacities. From 2013 to mid- the Board of Axis Private Equity Limited.
2014, Subsequently, he was an adviser to Axis
he was the acting Chief General Manager of Bank on Leadership Development and
State Bank of Bikaner and Jaipur. He has Talent Management.
also worked as a CEO of State Bank of
India, Paris, from 2004 to 2008. He holds a A qualified Cost Accountant, he started
B.Sc. (Hons.) from Presidency College and his career with State Bank of Bikaner and
is a CAIIB.
Our Leadership Team
Deepankar Bose Head, Corporate Centre

Santanu Banerjee Head, Human Resources

Sunil Samdani Chief Financial Officer

Nand Kumar Singh Head, Banking Operations and Customer Services

Subhro Kumar Gupta Chief Audit Executive

Sujoy Roy Head, Branch Banking

Srinivasan Balachander Chief Compliance Officer

Vijaykumar Ramakrishna Chief Information Officer

Arvind Kanagasabai Head, Treasury

Biswajit Das Chief Risk Officer

Mahendra Mohan Gupta Head, Legal

Ronendra Chowdhury Head, Micro Banking

Saurabh Jain Head, Wholesale Banking

Indranil Banerjee Company Secretary

Nicky Sharma Chief Strategy Officer

Corporate Overview
Our Compassion at Work

Our Compassion at Work

Bandhan Bank believes in a hi-touch model. We connect with our

customers, not just for transactions but also emotionally. Our
DBOs know about their customers’ families, what they do, where
they stay and their interactions go beyond just instalment
payments and
deposits. Our DBOs and DSC Heads are almost a part of their families.
At our branches as well, we put great emphasis on customer service.
Our senior citizen customers have mostly moved from various other
banks to Bandhan Bank. They often shower compliments on our
branch officials for the compassionate and considerate customer
service.

We work on the guiding principle that

“the more you demonstrate empathy for
your customers and connect that
experience
to your key performance indicators
(KPIs), the more value you will
uncover”.

There is an uncomplicated simplicity in inclusion. Our purpose is to not just

the manner which the Bank goes about its achieve financial literacy, but also
routine business. It is a bank that invests financial liberation for customers.
in compassion and empathy. It devotes
itself to understanding the emotional
needs and motivation of its customers,
and aligns itself to meet them. It is
driven by a constant desire to serve the
economically weaker sections
overlooked by the formal banking
system. The Bank is a true example of
how a “for-profit and
commercial” bank can also be a model for Hi-Touch backed by Hi-Tech
a social cause. The Bank follows a “hi-touch” model of banking.
It places emphasis on face-to- face meetings with
Customers at the Centre of banking customers and borrowers to assess their
Everything needs and repayment abilities. At our Doorstep
The basic principles and tenets that the Service Centres, the target of each Doorstep
Bank follows is what sets it apart in the Banking Officer (DBO) is to meet every single
banking space. Even while other banks micro banking customer 52 times in a year. This
generally maintain focus on balance sheet helps understand them better and improve the
growth, Bandhan Bank clearly focusses quality of business. In general banking, too, we
on customer’s growth, which results in a aim to address all the requirements of
healthy balance sheet as well. Our basic a customer – whether it is to open a bank
philosophy is to reach out to an unbanked account or a fixed deposit. We also sanction
customer and associate with her through and disburse any type of loan
different touchpoints. We serve her in the – personal, gold, agri, home, business.
best way possible, enabling real financial At the heart of this hi-touch model is a
20
 Annual Report 2018-
19

robust tech enablement that

allows our on-ground staff to
serve the customers better.

Our DBOs travel kilometres every

day to meet the customers in
person. To provide confidence in
the collection process and give real-
time update on loans, DBOs carry
voice-enabled Hand-Held Devices
(HHD). These devices are
connected to our core banking
system and provide customers with
real-time information on loans. This
is the best example of covering the
last mile with the Bank reaching the
customer.

Going the Extra Mile

Our endeavour is to serve our
customers, even if it means going the
extra mile.

21
Every single customer is greeted one- Creating an Impact the Bank has nearly trebled its employee
on-one and with a smile, particularly strength to 32,342, thus playing a significant
Your Bank has been able to create
the Senior Citizens. In all our bank role in employment generation.
substantial impact on customers, markets
branches, we have dedicated Senior
and communities through the various
Citizen desks for priority service. Our Changing the Rules of the Game
business and community development
Senior Citizen customers regard us for Your Bank’s genesis is to provide its
initiatives. Today, 71% of our banking
our ability to resolve issues quickly. services to those with no access to formal
outlets are in rural and semi-urban areas,
But more importantly, they appreciate banking system in the under-penetrated
thus reaching out to the populace that
our courteousness and timely service. markets. Your Bank offers world-class
needs better and more access to formal
It is our compassion and approach that banking products and services to the
financial services. Through our
has urban, semi-urban and rural customers
microloans, we have empowered millions
enabled growing the customer base from alike. What sets your Bank apart are the
of women who have been able to become
64 lakh during launch to 1.65 crore strong roots it has amongst the socially
the financial powerhouses for their
today. disadvantaged. An experience of nearly
families. Our community development
programmes have helped many not-so- two decades in the MFI space enables it to
For our micro banking customers, we understand the customer in that segment.
privileged
also run financial literacy programmes And it is this understanding that helps
beneficiaries to not only develop sustainable
to spread awareness of what their money the Bank contain risks and maintain
livelihoods but also create a ripple effect
can help them achieve. We impart literacy low delinquency levels.
through further employment generation.
on loans and deposits with an attempt to
In the three and a half years of operations,
bring in discipline in their money matters.
Corporate Overview
We Believe in Hope. We Invest in People.

We Believe in Hope. We Invest in People.

We understand that people matter. Our larger objective is to

enhance livelihood opportunities for our customers and help
them attain sustainability and self-sufficiency. We aim to usher in
life-transformation by unravelling the power of credit for those
who need it the most. It is this approach that is empowering
the ecosystem and creating wide-scale impact.
Here are a few instances.
Shardaben Bhavsar “Bandhan Bank unlocked new avenues for my business and helped me
Ahmedabad, Gujarat redefine my family’s future.”
Shardaben Bhavsar, a resident of Ahmedabad led a modest and laborious life, before
taking the reins of destiny into her own hands, with a little help from Bandhan Bank.

Her husband owned a cloth printing machine, which was their only source of
income. Owing to the dwindling demand, the profits of her husband’s business were
on a steep decline. Shardaben was in dire need of reinventing their business to stop
their plummeting yields.

With a zeal to secure the future of her business, Shardaben reached out to Bandhan
Bank for a loan to start their own manufacturing unit. In 2012, she borrowed
C15,000 from the Bank to buy a sewing machine for her son who worked as a tailor.
In two years, she was able to kick-start the manufacturing business with women’s
leggings as their first product. Slowly and steadily, with the help of another loan of
C40,000, she purchased three more machines. With the tailoring business gaining
significant momentum, the cloth printing business took a back seat and so did its
losses. They evolved their products as per industry and market needs. Currently, they
own 14 tailoring machines and have been able to offer employment to 15 people.
The Bhavsars are currently in their seventh loan cycle of C1,50,000 and are looking
to
expand to other verticals as well. They are in the process of acquiring a larger space for
accommodating 25 machines and subsequently increase their production capacities.

Shardaben believes that her relationship with Bandhan Bank has been a life changing
experience for her business and family.

22
 Annual Report 2018-19

Nilam Devi “Bandhan Bank’s support has paved the way for my entrepreneurial journey
Begusarai, Bihar along with sustained financial stability”
Nilam’s journey is a story of relentless perseverance. She has been a harbinger of
change for her family and the women in her community.

Nilam’s husband, a farmer, was the sole earning member of the family. He could
barely make two ends meet. In spite of her inherent societal inadequacies, she was
determined to increase the financial income of the family.

However, she was unable to obtain a loan from mainstream financial bodies
owing to the long list of complex documents required. The longer she waited, her
goal of starting her own business moved farther away.

Nilam saw the light at the end of the tunnel when she heard about Bandhan Bank.
With a simplified application process, she was able to apply and avail her first
loan of C10,000 from the Bank. She utilised the funds to start her own costume
jewellery shop. She gave a new lease of life to her family with her innovative venture.
Expressing her gratitude, she says, “Bandhan Bank has helped me step in to the
entrepreneurial world and transform myself from job seeker to job giver”.

She believes that her financial independence has also helped her champion the cause
of her children’s education. Her son is now a student of engineering whereas her
daughter is in the 12th standard.

Sumathi Balasubramaniam Pillai

“With Bandhan Bank by our side, we are hopeful to expand our business
Silvassa, Dadra & Nagar Haveli
even further”
Sumathi’s husband was a small time cloth manufacturer. He was in the business of
manufacturing plain white cloth and supplying that to traders. His earnings could
hardly sustain the family of five. To make matters worse, his machine broke down
and this reduced the supply of cloth to his vendor. The improper functioning of the
machine caused serious setback to his business.

At this juncture, Sumathi availed a loan of C35,000 from Bandhan Bank to purchase
a new machine. This support from the Bank came in as a blessing and helped revive
their business. Since then there has been no looking back for them! Their sales
witnessed an all-time high, demands increased to such an extent that they have now
employed three workers. At present, they have two fully functioning machines.
Their association with Bandhan Bank continues to thrive. Sumathi is currently in
her fifth loan cycle of C1,30,000 and has reinvested the money in the expansion of
the business. She is happy that her two sons have been able to pursue higher studies,
all
thanks to the financial support she received from Bandhan Bank that transformed the
family’s life.

23
Corporate Overview
Value Creation for Stakeholders

Value Creation for Stakeholders

At Bandhan Bank, creating value is our central proposition. We

aim to be a Bank that truly matters in the lives of all our
stakeholders. The foundation on which we build value for
stakeholders is the core of our business model. Besides delivering
consistent value to our
stakeholders, we also measure the impact to increase its effectiveness.

INDUSTRY CUSTOMERS EMPLOYEES

Your Bank focusses on a segment that is We listen carefully to our customer, We have been the largest recruiter in
outside the formal banking system and focus on what she really values and India’s banking industry for the past
often has no credit history. With this offer services straight from the heart. three years. Our total employee base
approach, it becomes an active participant With honesty and straightforwardness in has increased from 28,159 in FY2018
in revolutionising India’s banking sector. our dealings, we consistently deliver to 32,342 in FY2019. From about
Our unique business model covers the what we promise. This approach has 13,000 at the time of launching
unbanked and underbanked as well as the helped us in expanding our customer operations, the
urban-banked populace looking for better base to employee base has nearly trebled. To
or more banking services. The former 1.65 crore in just over three and a half build human resource capabilities, your
remains our key focus area. By bringing a years of operations. Furthermore, as we Bank hires people with the right quality
large population into the formal financial transformed to a bank from an MFI, we and experience. With best-in-class
system, your Bank has changed the passed on the benefit of lower cost of training, your Bank strives to empower
money habits of people, thus contributing funds to the customer. We have brought employees by upskilling them in
to industry growth. down the interest rate on microloans from competencies that ultimately lead to
22.40% per annum, which was a day superior customer experience and value
before we started the Bank, to the current delivery.
18.65%. Our current interest rate on
microlending is the lowest in the country.
For our Senior Citizens, in FY 2018-19,
the differential interest rates on fixed
deposits was 0.75% more than the
standard rate.

COUNTRY
Our business model is built on furthering
financial inclusion, thereby empowering
the underserved population of India.
SHAREHOLDERS We create women entrepreneurs and
We are a differentiated commercial bank generate employment opportunities.
with our growth drivers in place. We SOCIETY Today, your Bank has graduated from
rank 7th largest among the public and Your Bank supports several development being a mere service provider into a
private banks in India in terms of market programmes to transform the lives of the national opportunity creator. As a Bank,
capitalisation. Today, we have over two disadvantaged and extend our holistic we have been adding thousands of
lakh shareholders. We continuously support to the marginalised community. accouts per day, a significant portion
engage with our key stakeholders to Our objective behind this is to increase of which is from the society’s poorest
update about internal developments. We their level of awareness, and help them sections. With this, we usher the
also maintain extremely high build long-term relationships with the unbanked under the purview of the
governance standards. society and with each other, thereby formal banking system and contribute to
making them self-sufficient, independent economic development.
and organised.

24
Leveraging Core Strengths to
Better Serve Customers
Our core strength lies in understanding our customers and building
strong ties with them. We are leveraging our vast experience in micro
banking and retail strength to expand presence and reach out to newer
customers. We use our technological capabilities and analytics to
understand the needs of customers effectively and serve them
accordingly.

Our experience in microfinance gives New Products

us a clear understanding of the retail
At Bandhan Bank, we were convinced that
customer. We are leveraging our
we need not have all banking products on
“retail only” focus, experience,
day one of operations. We started with
resources and
basic banking products in lending and
capabilities of understanding this segment
deposits, and kept adding to the portfolio.
of customers. This is used to expand into
What helps in quick adoption of new
other segments and grow the loan book.
products is your Bank’s huge customer base
Our thorough understanding of the small
to whom we pitch new products based on
borrower, coupled with low NPA, gives
needs.
us the confidence to serve these
customers through additional touchpoints Strong Liability Book
and expand our business. We have built a strong retail book.
We have successfully developed a large
We are working to maintain a clear
diversified retail liability base. Our
dominating presence in core MFI. Our
low-cost CASA stood at a healthy
aim is to provide a diversified set of
40.75% of total deposits. As we expand
products to our customers and gradually
our branch network and reach out to
move up the value chain. We are also
newer geographies, we will drive more
constantly reviewing our products and
deposits.
services to ensure they keep pace with the
changing needs of customers. Moving Forward
Today, we have 986 bank branches, 3,014
Doorstep Service Centres, and 481 ATMs
across India. As a clear business strategy,
we are working towards strengthening our
We have successfully product portfolio and maintaining quality
developed a large of our assets. We also have a continued
focus on deposit and CASA accretion.
diversified retail liability
Moving ahead, MSME will be a key focus
base. Our area to scale higher and expand our
low-cost CASA stood at presence.
a healthy 40.75% of
total deposits.
Corporate Overview
Our Product Suite

Our Product Suite

We provide a comprehensive, uniquely designed and growing product
portfolio with attractive features and new offerings. Our wide
spectrum of asset and liability products and services is designed
for our customers in urban, semi-urban and rural India.

RETAIL LIABILITY PRODUCTS

Savings Account savings account offering to non-profit NRI Accounts

a. Premium Savings Account organisations like Trusts,
These accounts are packed with exciting
This account is offered at a Associations, Societies, Clubs, features and benefits. They also offer
Monthly Average Balance (MAB) NGOs, Hospitals, Educational and flexibility to earn attractive returns on
of C1 lakh. It offers hassle-free Research Institutes and entities savings and fixed deposits. Also now
banking with seamless banking eligible for a Savings Account as per the customers can remit money to their
privileges and complimentary RBI Guidelines. NRI account through SWIFT from
premium services to the customers. g. GOS Savings Account overseas with the best conversion rate.
b. Advantage Savings Account This account is available to NRI Accounts: Key Benefits
At C25,000 MAB, this account offers government departments/bodies/ Secured channel for fund transfer
exclusive banking benefits and agencies for grants/subsidies released Direct credit to your Bandhan Bank account
unique services, improved access and for the implementation of various Most convenient channel for creating Foreign Currency
higher transaction limits, including programmes and schemes, sponsored Inward remittances are accepted in
access by the Government of India/State USD, GBP and EUR
to a higher rate of interest and Governments, as per RBI Guidelines.
transactions. h. BSBDA Savings Account
c. Standard Savings Account The product promotes financial
It offers enhanced banking and inclusion, targeting the unbanked
superior banking experience segments of the society with limited
with minimum monthly access to banking services in any
balance form. Corporate Salary Account
requirements, including higher i. BSBDA Small Savings Account The Bandhan Bank Salary product is
quality Designed to enable the common man designed to provide a range of banking
banking needs. to open and maintain a bank account, solutions. Customers have instant access
d. Special Savings Account the zero balance BSBDA Small- to funds across the vast Bandhan Bank
A carefully crafted banking product Basic Savings Bank Account can be network, thus offering the convenience
for the differently abled with diverse opened with minimum of banking. There are also exciting
needs. Being sensitive to their needs, documentation. offers and discounts on Bandhan Bank’s
the Bank offers higher benefits ATM/ Debit card.
Savingswith
Accounts: Key Benefits
lower MAB maintenance 6%facilities.
interest on deposits above D1 lakh
Salary Account: Key Benefits
e. Sanchay Savings Account Exclusive banking services and lifestyle privileges for Premium Savings Accounts
Higher transaction limit at other
Higher access
This account allows improved transaction limit
bank ATMs
Mobile and Internet Banking services for ease of tracking money
to money and makes tracking of Daily ATM cash withdrawal and shopping
the account activity easy. We A ccount Number Portability
Zero penalties on non-maintenance of
offer complete doorstep services Anywhere, Anytime Banking using our Internet & Mobile Banking platforms
Monthly Average Balance
to our Sanchay customers.
f. TASC Savings Account
Designed to support non-profit
entities, the SB–TASC (Trust,
Association, Society and Club) is a

26
Current Account
a. Biz Premium Current Account d. TASC Current Account Current Accounts: Key Benefits
The Biz Premium Current TASC (Trusts, Associations, Society Internet banking
Account allows you to enjoy a and Clubs Current Account) offers Anywhere free banking and higher cash deposits
host of secure banking solutions to
privileges with an MAB requirement Institutions, Higher and privileged other bank
of C1,00,000. non-profit organisations, NGOs, ATM withdrawals
trusts, associations, societies, clubs, Higher transaction limits
b. Biz Advantage Current Account hospitals and educational institutions. At-par cheque facilities in multiple cities
Provides improved services with an With a monthly average balance of
MAB of C25,000, along with C25,000, customers can enjoy
several enhanced benefits that help complete banking solutions.
manage and grow money with ease.
e. GOS Current Account
c. Biz Standard Current Account A premium high-end current account
Offers best-in-class value to the aimed at handling the banking and
customers with an MAB of transactional needs of Government
C5,000. Organisations. Carefully crafted to
Best suited for small business owners deliver a wide array of solutions to
who require seamless and simple cater to all requirements.
banking services to grow business
and money.

Fixed Deposits b. Advantage Fixed Deposit d. Tax Saver Fixed Deposit

a. Premium Fixed Deposit With this reinvestment plan, one can Offers tax saving investment
Helps grow customer’s money with earn interest that is compounded options under Section 80C of the IT
added advantages and differential quarterly and reinvested with the Act, with minimum deposit of
interest rates for high value deposits. principal amount. C1,000 and maximum of C1.5 lakh
Offers minimum C2 crore deposit for in a year. Helps save hard earned
select customers for tenures ranging c. Standard Fixed Deposit income, with benefits and
from 7 days to 10 years. Offers a The traditional fixed deposit offers convenience of maximising wealth.
range of privileged benefits, monthly and quarterly interest pay-
flexibility and ease of account out schedules to ease monetary needs e. Recurring Deposits
closure. of the customer base and help grow A steady income option that can be
savings and earn better interest operated singly or jointly and can be
rates as per the convenience of opened with a minimum instalment
the customer. of C100, with tenures ranging from
6 months to 10 years.

Dhan Samriddhi EDC-PoS Terminals Fixed Deposit: Key Benefits

(Cash Certificate Scheme) Set up merchant acquiring business to Automatic renewal deposits feature
Helps in monetary growth by earning increase penetration of PoS terminals with less than D1 crore of face value
interest that is compounded quarterly in smaller, but cash-intensive towns Differential rates and higher rate of
and reinvested with principal amount. and villages. Aims to promote a less- interest for high-value deposits
Maturity period ranges from 6 months to cash economy aligning with needs of Premature withdrawal option
10 years. Boosts income generation by the government’s digital economy Overdraft facilities offering against fixed deposits
helping meet future financial goals. goals.
Offers services to small businesses
operating in urban, semi-urban and other
remote locations.
Our Product Suite

ASSET PRODUCTS

a. SME Loans d. Retail Loans

Loan offerings include enhanced Offers an opportunity to build, buy
liquidity, insurance and simplified or reconstruct homes and further
processes. Also offer ease of payment life goals; two-wheeler and personal
with low interest rates. loans also offered with comprehensive
options and flexible terms.
b. Micro Banking Loans
Offers a wide array of loans to benefit e. Small Enterprise Loans
small business owners in need of Enhances business with working
financial assistance. Helps grow capital and term loans, with ticket
additional income generation avenues size starting from C1 lakh to C10
and offers enhanced opportunities to lakh, with composite facilities and
women entrepreneurs to achieve their flexible payment options.
business goals.
f. Gold Loans
c. Agricultural Loans Aiming at fulfilling quick and urgent
Offers farmers of India the monetary needs; easily accessible with
opportunity to secure their future with simplified documentation process and
a range of products – livestock, quick turnaround time. Provides quick
warehousing and crops. Benefits accessibility to a jewellery assessor for
farmers with attractive interest rates, instant disbursements.
insurance, age eligibility up to 75
years and doorstep services.
THIRD-PARTY PRODUCTS

The Bank offers a host of third-party offers health insurance products from Apollo Life Insurance Products Offered:
products under three main categories – Munich Health Insurance Company Ltd. Term Plans
non-life insurance, life insurance and
mutual funds. Traditional Endowment Plans
Non-Life Insurance Products Offered:
Credit Cover for loan products
Motor insurance
The strategic focus of the Bank is to become
Health insurance Mutual Funds
a one-stop shop experience for all banking
The Bank offers select equity and debt
services to its customers. Accordingly, the Critical illness
mutual fund products in association with
Bank has a distribution model for third-party insurance nine Asset Management Companies:
products. In order to further strengthen
customer proposition, the Bank assesses the Fire and allied perils Franklin Templeton
customer requirements and risk profile and insurance Personal accident India Mutual Fund
accordingly tries to fulfil their needs. insurance Home insurance HDFC Mutual Fund
ICICI Prudential Mutual
Non-Life Insurance Life Insurance Fund UTI Mutual Fund
Offers general insurance products from The Bank offers life insurance products Reliance Mutual
New India Assurance Company Ltd and in partnership with HDFC Life Fund SBI Mutual
Bajaj Allianz General Insurance Company Insurance Company Ltd. and Bajaj Fund
Limited; Allianz Life Insurance Company Ltd.
Aditya Birla Sunlife Mutual
Fund Kotak Mutual Fund
Axis Mutual Fund

DIGITAL PRODUCTS
One of our primary strategies is to offer services. Some of these are – inter- and liability products. This helps
digital and technological solutions to bank and intra-bank fund transfers, us reach out to potential
enable growth and reduce costs. Our utility bill payments, mandate customers.
ability to undertake banking transactions maintenance, cheque book requests,
through digital channels is an important ATM PIN regeneration and opening d. Hand-Held Devices
key to our growth and success. of fixed deposit accounts. The These time-tested hand-held point-
Internet Banking facilities provide of-sale devices are utilised for
a. Mobile Banking (mBandhan App) the ability to view account details, taking deposits from the doorstep of
mBandhan is the easiest mobile loan details, transaction status and our customers, who can also
banking application, designed to cheque status. It also offers online withdraw money from their
meet the daily banking needs of fund transfer through NEFT, RTGS accounts. The Hand-Held Devices
our customers. The user interface and IMPS, scheduling payments for are also used for collecting credit
of mBandhan is extremely future dates, instalments from customers.
simple, and setting up of standing transactions Transactions through these devices
making it very easy for even non-tech for recurring expenses, online opening through biometric authentication
savvy people to use mobile banking. of term deposits, modification of work out to be cost- effective even
With mobile banking, the customers beneficiary for fund transfer, and in metros. The DSC
can access and manage the account on online bill pay. employees visit customers’ residences
their respective phones. One can and utilise these devices which is
check account balance, make fund c. Tab-based Banking connected with the Core Banking
transfers, request a cheque book, open We harnessed technology further System via the Internet to process loan
a fixed deposit, block a card, and do to introduce tablet banking (tab- applications, enabling low IT costs.
much more. banking) facility for our micro
banking customers. Through this, the e. Point of Sale Solutions
b. Internet Banking tablet We also offer debit and credit card-
We offer Internet Banking services is used to accelerate the account based merchant PoS solutions (card
to our customers through our opening process. This process eases swiping machines) and Aadhaar-
website www.bandhanbank.com documentation, reduces cost and enabled mobile PoS terminals. The
through which we offer various increases the turnaround time. Tab- launch of Bharat QR Code also
based banking facilitates both asset enables peer-to-peer payments.
Corporate Overview
Our Human Capital

Our Human Capital

Bandhan Bank is dependable, high performing and human. We are a
bank that measures economic success with our social
responsibilities, building on our business model’s core strengths. We
firmly believe that people are our greatest asset and our primary
source of competitiveness in the industry. It is our people who are
enabling us to achieve our strategic mission with an undaunted
commitment.

We remain focussed on integrating our It is in the DNA of the Bank to trust Training Centres
corporate values and aligning the personal people to take up responsibilities and We realise the need for consistent training
aspirations of our Bank with that of our prove their mettle – the entire business at the Bank. We ensure the upskilling of
business objectives. The Bank has been philosophy our staff members to meet the ever-
a huge employment generator for the of helping people develop sustainable evolving needs of our customers – be
banking industry over the past three years. livelihoods is based on this. it through customer-facing functions or
We trebled our workforce from about
back-end operations. Hence, we have set
13,000 at the time of launch to 32,342 Many believe that since we are a up 11 training centres across the country
currently, thus adding nearly 20,000 Kolkata- based bank, much of the to ensure our staff gets adequate and
people on our payrolls. workforce in the head office would be periodic training to be on top of the game.
from the city. Contrary to this, we have a On an average, a staff member undergoes
Many HR practices that we adopt help mix of people who have moved cities three training programmes in the year. The
drive the culture of performance and and settled in Kolkata to work for the training programmes are conducted over
alignment to our overall vision. As our Bank. The mix of opportunity of the a variety of aspects from technical skills
business grows, we are building the right role, early success of to soft skills. In FY 2018-19, a total of
capabilities and capacities at all levels. To the Bank, and shared vision has made this 31,973 employees were trained on
get the right skill set in order, we are possible. Today, we are a national bank various facets of general banking and
hiring the right mix of people with the with a diverse set of people from various micro banking.
relevant banking experience across levels. cultures and beliefs.
Learning Management System
While we have a formal training setup
with our training centres, we also have an
online system for learning. The Learning
Management System (LMS) is accessible
to all employees and they are encouraged
to take up the modules. The courses
available are on banking principles as well
as on disciplines and soft skills. At the end
of each course, employees go through a
test. Upon successful completion of this,
they are given a certificate of completion.
The LMS helps employees to refresh their
knowledge. It is also a useful tool to
induct fresh employees into the banking
scheme of things.

30
Talent Grooming and Retention after having completed three years since developments and the recruitment
Through the various staff engagement getting the licence. A fixed parameter numbers being handled, it drew a
programmes and training interventions, for being eligible for promotions was – lot of attraction among prospective
Bandhan Bank has been successful in one should have completed three years employees. The Bank also strengthened
retaining quality talent. Loyalty for us of service with the Bank. The other the management team by hiring senior
is paramount and there are rewards criteria varied across grades. The entire resources from various leading banks and
for being loyal with the Bank. High promotion appraisal process had three working across India. Based out of the
vintage employees were offered stages – formal appraisal by headquarters in Kolkata, the management
ESOPs. This was largely for their supervisors; psychometric test; and a team includes a mix of professionals
commitment in taking the Bank to the face-to-face interview. Since Bandhan from various areas of expertise,
level it has reached today. Similarly, all Bank believes in a hi-touch approach to various geographies and with credible
the training initiatives ensure that customers, banking experience from prominent
employees stay connected to the Bank. we adopted the same for promotion banks.
It also helps enhance their performance, evaluation too. Each eligible candidate,
thereby creating opportunities for above a certain grade, appeared for NextGen Bankers’ Programme
bigger roles and responsibilities. We promotion interviews to determine if We have also realised that manpower
also offer cross- s/he was ready for the next level. A requirement will be a constant factor for
functional opportunities to the employees. total of 5,507 candidates appeared for us, as we grow. At the branch level, it is
Our micro banking performers underwent the written tests, while 299 appeared for important to recognise the differentiation
an assessment and those capable were personal interviews. we create through the Bandhan way of
granted positions in bank branches. doing things. Hence, we launched the
Attracting Talent ‘NextGen Bankers’ Programme’, a 9-
Performance Management System The Bank has been gathering a lot month banking course. The graduates
We foster a performance-based culture of eyeballs due to the volume of from this programme get placed in various
that necessitates the adoption of a robust recruitment. Also, the accomplishments branches within the Bank. The advantage
performance management system (PMS). of the Bank have been topics of we
During FY 2018-19, the Bank announced conversation in banking circles. Owing build through the programme is that of
its first-ever list of promotions. This was to the newsworthiness of the Bank’s having Bandhan’s DNA infused in
them from Day 1.
Risk Management

Risk Management
Banking is our business – so risk management is a necessary and
intrinsic part of the way we work. Our customers trust us to make
it integral to our service and our culture. It is part of our
responsibility to them, as well as to investors, employees and other
stakeholders.

We, at Bandhan Bank, review our (“2nd LoD”) comprises all the
principal risks regularly, because we work independent risk and control functions.
in a dynamic environment where new The 3rd Line
risks may arise or previously identified of Defence (“3rd LoD”) is Audit, which
risks may have a different impact. assures the effectiveness of our controls.
Effectively managing risks is the All the 3 LoDs are independent of each
responsibility of all employees. Managers other and accountable for maintaining
are accountable structures that ensure adherence to the
for successfully managing the risks design principles at all levels.
they own. The Board needs reasonable
assurance that our risk management and All material risk types are managed via
reporting systems remain sound. So we risk management processes. These include
have a range of policies and processes credit risk, credit concentration risk,
involving both internal and independent market risk, operational risk, fraud risk,
controls: Internal Audit and external outsourcing risk, liquidity risk, interest
auditors. Together, they aim to help the rate risk in banking book, strategic risk
Bank achieve its business objectives & business risk, reputational risk, legal &
while cutting to an acceptable minimum compliance risk and Information Security
the risk of operational failures, (InfoSec) risk. Scenarios and
misstatements, inaccuracies and errors, measurement approaches for quantifying
fraud and non- compliance with laws and risk and capital demand are implemented
We, at Bandhan Bank, regulations. across the material risk types.
review our principal risks
Risk Management Principles Monitoring, stress testing tools and
regularly, because we work
The Bank operates a Three Lines escalation processes are in place for
in a dynamic environment of Defence (“3LoD”) risk key capital and liquidity thresholds
where new risks may arise management and
or previously identified risks model. The 1st Line of Defence (“1st metrics. Systems, processes and
may have a different LoD”) is all the business divisions and policies are critical components of our
impact. service providing divisions who are the risk management capability.
“owners” of the risks. The 2nd Line of
Defence
Risk Governance ii. determine and implement risk and
The Bank’s Board, through Risk management policies, procedures and
Management Committee of the Board methodologies that are appropriate to
(RMCB), is informed regularly and – the businesses within each division, Several specialised teams
as necessary – on special developments such as Credit Risk, Market
in our risk situation, risk management iii. recommend to the Board/RMCB to Risk, and Information
and risk controlling. They are also approve credit, market and Security, among others,
informed about our reputation and liquidity risk limits,
within the risk management
material litigation cases.
iv. conduct periodic portfolio reviews functions, cover the
At the meetings of the RMCB, the to keep the portfolio of risks overarching aspects of
Management reports on credit, market, within acceptable parameters, and, risk management.
liquidity, business, compliance, model,
operational as well as litigation and v. develop and implement risk
reputational risks. It also reports on credit management infrastructures and
risk strategy, and credit portfolios, among systems that are appropriate for each
others. The Risk Committee deliberates division.
with the Management on issues of
aggregate risk disposition and risk Independence of the CRO is ensured
strategy. It also supports the Board in through a fixed tenure and periodic
monitoring the implementation of this reviews by the Board and RMCB.
strategy.
Several specialised teams such as
The Audit Committee monitors, among Credit Risk, Market Risk, and
other matters, the effectiveness of the Information Security, among others,
risk management system, particularly the within the
internal control system and the internal risk management functions, cover the
audit system. overarching aspects of risk management.
Their mandate is to provide an increased
The Chief Risk Officer (CRO) has direct focus on holistic risk management and
management responsibility for all the risk cross-risk oversight to further enhance our
management functions such as Credit risk portfolio steering. The key objectives
Risk Management, Market Risk are to:
Management, Operational Risk
Management and Liquidity Risk Control. i. drive key strategic cross-risk
In addition, the CRO is also responsible initiatives and establish greater
for monitoring, analysing and reporting cohesion between defining portfolio
risk on a comprehensive basis. This also strategy and governing execution,
includes including regulatory adherence,
the asset and liability gap, capital,
liquidity, legal, compliance and regulatory ii. provide a strategic and forward-
risks, as well as other non-financial risks. looking perspective on the key risk
issues for discussion at senior levels
These are established with the within the Bank (risk appetite,
mandate to: stress testing framework), and

i. support that the business within each iii. strengthen risk culture in the Bank
division is consistent with risk and foster the implementation
appetite that has been set within the of consistent risk management
Risk Appetite Framework, established standards.
by the Board,
Corporate Overview
Risk Management

Risk Management
Risk Management Framework

Board of
Directors

Risk
Management IT Steering Audit
Committee of Committee of Committee
the Board the Board of the Board

Risk
Management
Department
(Chief Risk
Officer)

Information
Information
Security
Security Risk
Committee
Management
(ISC)

Credit Risk
Credit Risk Management
Management Committee
(CRMC)

Asset Liability
Market Risk Management
Management
Committee
(ALCO)

Operational
Operational Risk
Risk Management
Management
Committee
(ORMC)

Product &
Change
Management
Committee
(PCMC)

Fraud
Prevention
and
Monitoring
Committee
(FPMC)

34
Annual Report 2018-
19

Risk Culture Risk and Capital

The Bank seeks to promote a strong risk The Internal Capital Adequacy
culture throughout the organisation. The Assessment Process (ICAAP) requires
aim is to help reinforce our resilience banks to identify and assess risks,
by encouraging a holistic approach to maintain sufficient capital to face these
the management of risk and return risks and apply appropriate risk
throughout the organisation as well as the management techniques. With this, it aims
effective management of our risk, capital to maintain adequate capitalisation on an
and reputational profile. ongoing and forward-looking basis, i.e.,
internal capital supply to exceed internal
We actively take risks in connection with capital demand. The Bank maintains
our business and, as such, the following compliance with the lCAAP as required
principles underpin the Bank’s risk under Pillar 2 of Basel 3, through a risk
culture: management and governance framework,
methodologies, processes
i. Risk is taken within a and infrastructure. In line with Basel
defined risk appetite requirements, the key instruments to help
us maintain our adequate capitalisation on
ii. Every risk taken needs to be an ongoing and forward-looking include:
approved within the risk management
framework i. a strategic planning process which
aligns risk strategy and appetite with
iii. Risk taken needs to be adequately commercial objectives
compensated
ii. a continuous monitoring process
iv. Risk should be continuously against approved risk, leverage
monitored
and capital targets set
and managed

Employees must exhibit behaviour iii. regular risk, leverage and capital
that supports a strong risk culture and reporting to management
employees at all levels are responsible
for the management and escalation of iv. stress testing framework which
risks. The culture is nurtured with also includes specific stress tests to
regular and adequate training of underpin our recovery monitoring
personnel in the business areas on their processes
roles in risk management and through
well-defined fraud risk management The ICAAP and RAF and the Strategic
framework and Document are approved by the Board on
The culture is nurtured a whistle-blower policy to prevent and an annual basis. These are defined based
with regular and adequate detect fraudulent and unethical activities. on the Risk Appetite and Strategic and
training of personnel in Capital Plan in order to align risk, capital
the business areas on Risk Appetite and performance targets.
their roles in risk The Bank has a well-defined Board
management and through approved Risk Appetite Framework
well-defined fraud risk (RAF) in place to optimise risk and
management framework return.
The appetite has been framed through
and whistle- blower policy
dialogue between risk management and
to prevent and detect businesses, strategically considering risk-
fraudulent and unethical reward trade-offs and within regulatory
activities. limit, wherever the same is defined and is
quantifiable to the extent possible.

35
Furthering our Brand Equity

Furthering our Brand Equity

Being a brand born in the East and because of the legacy of
Bandhan in its MFI avatar, Bandhan Bank enjoys a good equity in
these parts of the country. In the rest of the country, we are a
young entity
and building our salience is the primary objective. Our marketing
strategy, therefore, is two-fold – sustain the equity where we are
strong, and build the salience where we are yet to achieve mass
recognition. We use product communication to drive our advertising.
We also popularise important achievements of the Bank so as to build
credibility and drive consideration.

‘Aapka Bhala, Sabki Bhalai.’ is not people. TV Campaigns

just a tagline, it is the business
In FY 2018-19, we executed a thematic TV
purpose. It is also a strong
campaign to drive the salience of our FDs and
differentiator for us. In many of the
savings account, through the attractive interest
campaigns we run, we try to bring
rates they offer. We ran the commercials across
out this facet of our
81 channels in 11
business. We run campaigns, both online
languages to cover the length and breadth of the
and offline, highlighting stories and
country. We also undertook some tactical
narratives resonating with people. We
advertising of short commercials on television
also execute functional campaigns to
news channels and print media to deliver key
drive consumer attraction to the brand
through meaningful product benefit. messages.
Our overall strategy is to have a mix of
campaigns to reinforce our strength Print Advertising
with pan-India presence and enviable We use print advertising only for certain
business performance, localised product significant achievements and for trigger- based
communication around the targeted advertising. To strengthen and sustain the East
branches and large-scale visibility connect, we advertise on the Bengali new year
creation through television advertising with a product plugin. We do large scale print-
around our key product benefit – 6% based pan-India advertising to announce our
interest. Foundation Day. For this campaign, we also
focus on key business numbers to drive
confidence and trust in the Bank among the
target audience.

Out-of-Home Media (OOH)

We use this medium extensively because it
helps drive salience and product communication
in focus catchment areas. Through the year, we
did campaigns in
39 cities across the country. Our OOH strategy
is to be present in close vicinity of branches so
that we can increase awareness and
consideration for the Bank in that area. Also, in
a few towns, we choose major congregation
points for
We run campaigns, both online
and offline, highlighting stories
and narratives resonating with
Digital Marketing an increased engagement with the platforms for product queries, complaints
In FY 2018-19, we started a fresh fans and followers on different and requests. We also use video
focus on the Bank’s digital platforms. We have also witnessed advertising on digital to drive salience
presence. We ramped up our a growth in the number of within the targeted segments. Our special
frequency of posts on the social fans/followers. Customers have announcements around our quarterly
platforms like Facebook, Twitter started earnings and other corporate achievements
and LinkedIn. We are witnessing reaching out to us through these receive healthy interactions from the users.
large format displays to gather eyeballs.
Annual Report 2018-
19

Our Growth Enablers

We are constantly benchmarking ourselves against international standards
in terms of our technological capabilities, compliance, treasury
management
and operations. Based on these cornerstones for growth, we strive to
achieve greater strength and build a Bank that not only meets the financial
needs of but also provides high quality services to its customers.

Information Technology Technology Initiatives taken

Adoption of the latest technology and during FY2018-19
innovation remains a key thrust area for
the Bank. Technology has been a key
enabler and facilitator for the Bank to BHIM *99#
achieve its goals. It has been identified as BHIM App: Listing of
one of the strategic pillars to scale
higher. Bandhan Bank
Since inception, the Bank has been at
the forefront of leveraging technology to BHIM Bandhan UPI (Google Play Store)
provide better products and services to
its customers. Technology has enabled
the Bank to deliver solutions in line with
Chatbot
changing business and provide industry-
best solutions to supportGold Loan Lead Generation Module
its business
goals. The Bank continues to invest
Bharat QRinCustomer App (RuPay Version 2)
its technology with state-of-the-art IT
In-house Utility for De-Duplication
enabled core banking services. It has
Home Loan
scaled its technology infrastructure to Appraisal System
offer banking facilities to the delight
Digitising Documents for Board Meeting
of its customers.
Microbanking Paperless Insurance Claim Management System
To cater to its IT needs,Branch
the Bank Health
has Index Corporate Internet Banking Mobile Banki
created specific tech capabilities,
presenting an opportunity to leapfrog
its competitors. Its IT approach
revolves around developing the
strategy, multi- vendor approach,
technical capabilities, meeting business
goals, strategic aspirations and IT
implications. Its strategic IT projects
are aimed towards
– managing a full cycle of customer
relationships from onboarding to
retirement; digitising human-centric
workflows; having centralised API
store; evaluating core banking
system;
automating mundane tasks; centralising
To cater to its IT needs, the business rules; consolidating customer
Bank has created specific views; and developing micro
tech capabilities, creating banking solution.
an opportunity to leapfrog
its competitors.

37
Our Growth Enablers

Our Growth Enablers

Compliance Banking Operations statutory guidelines, our various essential
Compliance to regulatory and internal Bandhan Bank’s unique business model operational processes are documented and
guidelines is deeply embedded in our has given rise to differentiated and routed through our Product and Change
DNA. The Bank’s Board and Senior efficient operations processes. Our Management Committee. Once approved,
Management are committed to adhere to processes allow for smoother business these are circulated to our branches and
the highest standards of regulatory and while keeping necessary checks and other departments in the form of circulars
internal guidelines. This ensures that the controls in place. We have made for action. We also have Branch
Bank’s business is conducted within the significant investments in creating an Operations Manual and Micro Banking
purview of legality and the broader operations platform across key areas to Operations Manual to ensure
standards of integrity and ethical conduct. help ensure compliance, minimise errors understanding of the various processes
In pursuit of this goal, we have and seamlessly deliver our services. among all staff members thereby resulting
established an enterprise-wide Given the uniqueness of micro banking in effectiveness of operations at the
independent Compliance Function. In line and general banking, we have built and ground level.
with the Bank’s policies, the Compliance continue to evolve back-end operations
function that take the best of both worlds to As we expand our presence across the
is independent of any other function. deliver seamless services. country, we are also decentralising our
Also, it oversees compliance aspects and operations for smoother processing
management of compliance risks faced Operational controls and and quicker turnaround time (TAT).
by the Bank. procedures in Branches and We
Doorstep Service Centres (DSC) have a Regional Processing Unit (RPU)
The Compliance Department in Indore. This is in addition to our
The Bank has two types of banking
periodically apprises the Audit existing Central Processing Unit (CPU)
outlets, bank branches catering to general
Committee of the Board, the Board of in Kolkata. All liability accounts are
banking customers and DSCs catering to
Directors and Senior Management on processed in these two centres. All
micro banking customers. Each DSC is
compliance levels based on changes in account opening forms and KYC
linked to a bank branch for operational
the external regulatory environment. The documents are scanned by branches and
convenience. DSCs are self-sufficient
Department also undertakes compliance DSCs and transmitted to the Processing
and are empowered to open deposit
testing by way Units, and accounts are opened upon
accounts using tablets and also open loan
of thematic studies, control testing and fulfilment of all established KYC
accounts after necessary credit bureau(s)
testing at banking outlets and other requirements. The efficiency of our
check. The highlight of DSC operations
offices of the Bank aimed towards liability onboarding operations enable us
are the Hand-Held Devices (HHD) that
review of adherence to significant to open thousands of liability accounts on
are connected to the Core Banking
statutory and regulatory provisions. The a daily basis.
System (CBS) through cellular data. Our
department monitors the implementation
DBOs carry these HHDs in their group
of Know Your Customers (KYC), Anti- Our Loan Processing Unit, monitors
meetings and the entire instalment
Money Laundering (AML) and onboarding and disbursement of all
reconciliation for the customer happens
Combating of Financing of Terrorism loan products, other than microloans.
through these HHDs in real time.
(CFT) guidelines in the Bank. Our Merchants Risk Containment
To ensure timely and effective support Unit mitigates the risk of fraud in
to our branches and DSCs in their day- Electronic Data Capture merchant
to- day functioning, we have a regional onboarding through continuous
and central operations team structure. monitoring of transactions to detect
These unusual or suspicious patterns.
operations teams maintain oversight of the
quality of the operations and adherence to Our Phone Banking Unit uses an IT
prevalent guidelines at all times. infrastructure that includes customer
relationship management software, a
We lay significant emphasis on call centre platform, a voice logger/
processes and controls. To help maintain call recording system and computer
uniform and consistent standards in telephone integration. All calls that
transaction processing and service land on the interactive voice response
delivery, as well as compliance with system are authenticated by personal
regulatory and identification numbers and mandated
security questions before a request is safety and security concerns. Procurement Treasury is provided with Integrated
considered. We monitor the quality of and disposal of cash by branches and Treasury Management Systems to
interactions through listening to recorded DSCs is managed by linkages with undertake transactions and generate various
calls at the supervisory level to ensure local currency chests of other banks MIS reports. The department is provided
that we provide a compliant call centre with all the modern information and
under the RBI Currency Chest Linkage
environment to the customer. On an dealing facilities like Reuters,
scheme, centralised cash management
average, we manage 4,500 calls in a day. Bloomberg and CCIL dealing systems
arrangements with other commercial
banks and current accounts maintained to have a competitive advantage in the
For the clearing of cheques, we participate market as well as to provide finest rates to
with other local banks. Our regional
in all three cheque truncation system the customers.
and central operations teams monitor
clearing grids managed by National
reconciliation of all current accounts
Payments Corporation of India (NPCI) as The vertical helps to cater the foreign
well as local non-Magnetic Ink Character maintained with other banks.
exchange transaction needs of the
Recognition clearing houses in Bandhan customers. The forex desk provides
Bank locations. We offer the standard Corporate Banking Operations
competitive rates for conversion of
electronic payment and settlement Documentation and monitoring of all the major currencies like USD, GBP, EUR.
systems such as Real-Time Gross loans accounts above ₹10 lakh is carried Since the Bank focusses more on retail
Settlement (RTGS) and National out by Corporate Banking Operations customers, major transactions in demand
Electronic Funds Transfer (NEFT) (CBO) vertical. Further handling forex are plain vanilla forex products.
managed by the RBI, and Immediate inward and outward remittance are
Payment Service (IMPS) and National carried out by a centralised team as per The investment portfolio
Automated Clearing House (NACH) laid down practices. consists of different financial
managed by NPCI. For processing, instruments like Government
reconciliation and dispute resolution Overall the Bank has been able to Securities, State
pertaining to these payment channels, we establish key operational standards which Development Loans, Commercial
have developed centralised hubs with enables us to manage the operational risk Papers, Certificate of Deposits, Non-
backup centres. and run the operations smoothly in a Convertible Debentures, Equity scrips
compliant manner to accomplish desired and Mutual Fund investments. Apart
We offer a grievance redressal business growth in a cost effective manner from building
mechanism with an escalation matrix. We a core portfolio of investments in
with best-in-class customer service.
practice expectation to the changes in economic
The Bank has a well-defined Business
the concept of “First Contact Resolution” scenario, the team actively participates
Continuity Plan (BCP) for all critical
with the aim of providing a prompt in the trading activities to monetise short
operational processes.
and satisfactory resolution of customer term movements in the market. The
grievances through their first contact with investments of treasury increased by
Treasury 19.89% Y-o-Y to ₹10,037.48 crore
us. A dedicated central team oversees The Bank’s treasury department manages
the resolution of customer grievances during the Financial Year.
the daily cash flows and liquidity of the
received through various channels.
Bank. The department takes care of the
investment portfolio, forex transactions
Cash Management
and Assets & Liability management of
For a unique business model like the Bank. Treasury is responsible for
ours, we need to take particular care ensuring the safety, liquidity and yield
to ensure adequate cash is available of investments besides maintaining the
to meet all payment obligations – in regulatory obligations (Cash Reserve
branches, DSCs and through ATMs – and Ratio, Statutory Liquidity Ratio, etc.).
excess cash is promptly transferred to The team focusses on the optimisation
avoid accumulation. We have framed of overall portfolio yield while
internal guidelines for cash handling maintaining appropriate portfolio
including verification, sorting, storing and
duration in the broader context of the
transportation. These guidelines are in line
macroeconomic scenario and interest
with the regulatory directives and industry
rate movements.
best practices, keeping in consideration
Corporate Overview
Towards Equitable, Inclusive and Sustainable
Growth

Towards Equitable,
Inclusive and Sustainable Growth
Bandhan was conceptualised in 2001 as making a significant contribution is to broad-base the scope of services
an NGO to meet dual objectives of towards poverty alleviation. These and minimise areas of income leakage
women empowerment and poverty organisations work closely for the socio- in the not-so-privileged families. These
alleviation. economic progress of people who live in development interventions are aimed at
The organisation started delivery of the providing holistic support to the deprived
microfinance and development services. lowest echelons of the social system. community.
As microfinance activities grew, a Non- The endeavour of these institutions
Banking Financial Company (NBFC)
was acquired. This NBFC went on to
acquire a universal banking licence and
set up Bandhan Bank, without losing its
core values. The NGO continued to Development
focus on developmental work. Two Activities
trusts were also formed to deliver
similar services. Together, the
following entities are dedicatedly
engaged in development activities
which are aimed towards
bettering the lives of the underprivileged.
They share similar values, ethos and North East Financial Inclusion Trust
Bandhan- Konnagar Financial Inclusion Trust
philosophy with which Bandhan was
born, have a social mindset and work
towards

Bandhan-Konnagar - It is registered under the West Bengal Societies Registration Act, 1961
Details of Executive Committee members:
Sl. Name Designation Profile
No.
1 Ms. Ambalika Das President Marketing Manager in family confectionery business under the brand name of ‘K.C. Das’
Founder & Director, Green Reef Outsourcing Pvt. Ltd.
2 Prof. Jayanta Biswas Secretary Faculty of General & Strategic Management, All India Management Association
(AIMA) Co-ordinator (Training & Placement), University of Calcutta
Mentor, Ideal Institute of Engineering, Kalyani
3 Mr. Sanjay Treasurer Chartered Accountant & Cost Accountant by profession
Mukherjee Rendering service at Labware Ltd. (software product company)
4 Mr. Ramsebak Member Retd. IAS officer
Bandyopadhyay Served as the Secretary, Ministry of Corporate Affairs (MCA), Government of India
5 Ms. Vijayalakshmi Member CEO, Friends of Women’s World Banking (FWWB), a society providing financial and
Das capacity building services to organisations promoting livelihood and self-reliance of poor
women
6 Dr. Smita Member Faculty, Microfinance Management Course, Indian Institute of Management,
Premchander Ahmedabad (IIMA)
Founder, Sampark, Bangalore
7 Prof. Samar Datta Member Visiting Professor, Gokhale Institute of Politics & Economics, Pune
Retired Professor, Centre for Management in Agriculture at Indian Institute of
Management, Ahmedabad (IIMA)
Former Faculty, Dept. of Economics, University of Southern California, Los Angeles, USA

40
Financial Inclusion Trust (FIT) - This Trust is registered as a Public Charitable Trust
Trustee Details:
Sl. Name Profile
No.
1 Prof. Arindam Director, International Management Institute (IMI), Kolkata
Banik Member of the American Economic Association, Euro-Asia Management Studies Association,
Global Awareness Society International, USA
Author of more than 100 scientific articles on international economics, macroeconomics and economic
development Authored six books published by Palgrave–Macmillan London
Ph.D. from Delhi School of Economics in 1993
2 Mr. Rajendra Former Chairman, Tripura State Human Rights Committee
Kumar Ghose District & Sessions Judge, Tripura
Presiding Officer, Industrial Tribunal
Secretary, Law & Parliamentary Affairs Dept., under Government of Tripura on deputation
3 Mr. Sanjit Retired as Deputy Superintendent of Police from the West Bengal Police Service (WBPS)
Kumar Mallick Holds a Bachelor of Commerce degree

North East Financial Inclusion Trust (NEFIT) - This Trust is registered as a Public Charitable Trust
Trustee Details:
Sl. Name Profile
No.
1 Mr. Yogesh Former Chairman of National Bank For Agriculture And Rural Development (NABARD), an apex
Chand Nanda development financial institution in India
Full-time member of the National Commission of Farmers
Non-executive Chairman of the Agriculture Finance Corporation
Chairman of the Working Group for the formulation of the 11th plan for agriculture credit and the
cooperatives Post graduate from Delhi School of Economics where he secured the first rank in the
University
2 Prof. Jayanta Associate Professor (on Deputation) at National Institute of Rural Development and Panchayati Raj
Choudhury (NIRDPR)
Worked at Department of Rural Studies, Tripura University and State Institute of Public Administration and
Rural Development, Tripura
Ph.D. in Rural Development from Visva-Bharati University, West Bengal
He is an author/editor of 13 books and has more than 45 research articles published in National and
International journals and in edited volumes
Serves as Associate Editor for International Journal of Rural Development & Management Studies (IJRDMS)
and TUI – A journal on Tribal Life and Culture, Government of Tripura (Since 2012)

3 Prof. Amit Hazra Professor, Proctor & Registrar at Visva-Bharati University

Teaches post-graduate students under Rural Development discipline in Palli Charcha Kendra, Visva-Bharati,
Sriniketan
Pursued Agricultural Economics from Visva-Bharati University
THE KEY PROGRAMMES RUN BY THESE ENTITIES INCLUDE THE FOLLOWING.
Targeting the Hardcore Poor (THP) Programme:
are consequently able to sustain their can make informed financial decisions.
livelihoods. It is seen that within 18-24 Education on socially relevant issues is
months of this grant intervention, these also offered to increase their awareness
hardcore poor beneficiaries start to and help them live better lives. Overall
graduate, uplift themselves from extreme confidence building is done so that they
poverty and get linked to mainstream don’t fall in the poverty trap again.
society.
Over the years, it has been seen that there
This programme follows a 360 degree- is positive impact of this intervention
approach. Besides providing free in the lives of many. There are
assets, consistent counselling and certain beneficiaries who have
mentoring support is also extended. A moved from
weekly a stage in life where they were even
This is a unique programme designed subsistence allowance (considerable contemplating suicide for want of money
for the poorest of the poor. Grants (in amount of cash) is also given to these to a position where they earn thousands
the form of free assets, not cash) are women to meet their daily basic expenses of rupees as monthly income, have a
offered to destitute women. They start until the assets begin to yield returns. healthy life and are able to support all
generating income out of this asset and Financial literacy is imparted so that they needs of their families.

Programme Highlights

11 4,001 732 82,873 55,560

States Villages Staff Households Families graduated

Health Programme
This programme aims at increasing Swastha Sahayikas (SS) then work in
health awareness in order to reduce the villages to impart health education
health expenditure of underprivileged through regular health forums.
families. It gives special focus on
The programme also includes linkage
children under
and referral services, distribution of
5 years, pregnant women, lactating
health kit, setting up of water treatment
mothers and adolescent girls regarding
plants to provide safe drinking water,
safe motherhood, child nutrition, and
providing basic healthcare service through
sanitation issues. Under this initiative,
its polyclinics and rural health centres,
health volunteers are developed by
improving water and sanitation facilities,
selecting interested women from the
among others.
villages and providing them adequate
training. These health volunteers called
Programme Highlights

7 5,517 586 7,139 13,81,460

States Villages Staff Health volunteers Households

Education Programme
This programme encourages a diverse age areas. These aim to reach out to the non-
group of underprivileged children to begin school going and dropout children aged
and sustain academics amidst a congenial 4-8 years from economically constrained
environment. A unique, low cost, families with special focus on the girl child.
innovative model has been adopted to These free non-formal primary schools
ensure that the not-so-privileged children provide complimentary school kits and
are able to receive quality education. focus on classroom learning, attendance
Education centres have been set in rural and extracurricular activities.

Programme Highlights

5 1,979 338 3,332 1,03,058

States Villages Staff Schools Students
Employing the Unemployed
Programme This programme is aimed at addressing technology, business process outsourcing,
the issue of unemployment in India. computerised accounting, refrigerator and
Vocational centres known as Bandhan air conditioner repair, etc. After successful
Skill Development Centres (BSDC) are completion of these skill development
set up which provide training to courses, candidates either generate
unemployed youth. They can choose self-employment or find themselves
from an array employment with reputed companies.
of domains such as customer relations
and sales, hospitality, information

Programme Highlights

4 102 100 15 22,176 17,457

States
Village Staff Skill Development Beneficiarie Youth Placed
s Centres s

Financial Literacy Programme

This programme is aimed at deepening encourage participants to become
financial inclusion in rural communities. financially aware and gain the confidence.
In the crusade to ensure holistic The objective of this programme is to
development of people and communities, increase awareness among rural and
financial literacy and inclusion is the disadvantaged women about financial
tool that assists them to move from matters thereby empowering them to plan
sustenance to a sustainable growth path. their personal economies. They are also
Accordingly, this initiative pays special taught to use varied banking services.
attention in ensuring that our programmes

Programme Highlights

1 806 66 2,07,058
State
Village Staff Beneficiaries
s

Support from government and donors Total programme highlights

Besides funding support from Bandhan These entities are committed to scale up the impact created and the results
Bank, these entities are also fortunate generated on ground through the programmes mentioned above. They
to enjoy the trust and support of the have been able to transform the lives of lakhs of underprivileged.
state governments and other renowned

11 11,423
national and international donor agencies.
It is because of the encouragement and
faith that these organisations repose in the
three entities that they are able to continue
States Villages
their development programmes at scale.

1,887
Staff
21,00,832
Beneficiaries
 Chapter 3: Industry Analysis

Porter’s five forces analysis

Industry Rivalry

Competitive rivalry between big players is intense in the industry. In the financial service companies they

compete with their competitor on the basis of interest rates, deposit rates and investment services.

Threat of new entrant

Investor prefer to invest their savings in a good reputed financial company which provides wide range of

products.

Threat of substitute

Threat of substitute product is less because only few financial product available in the market.

Bargaining power of suppliers

Bargaining power of suppliers is low in this industry because it is regulated by RBI.

Bargaining power of customers

Bargaining power of customer is medium because they can easily switch to another company according to the

condition they need.

SWOT Analysis

Strength

 AUBANK has established itself as a strong SFB across multiple secured product lines.

 The bank has little geographical overlap with other SFB’s which limits the competition among existing

players.

 It has created customized products and services to cater to the evolving needs of its customers.
Weakness

 Concentration risk: AUBANK has significant exposure to the top four states, which together account for

90% of its loan book.

 Being a dominantly wholesale-funded entity, a rising interest rate environment may adversely impact

borrowing costs, and hence, profitability.

Opportunities

 Leveraging technology along with doorstep servicing would enable AUBANK in rapidly gaining market

share.

 AUBANK operates in underpenetrated geographies which offers it strong growth potential.

 The bank is yet to launch several other key lending products which will accelerate its business growth.

Threats

 With increasing credit penetration bargaining power of borrowers has increased. SFBs may also lose

business to other banks on account of refinancing as economy gets further formalized.

 With several new banks, fintech companies and existing banks vying for same talent pool, nurturing and

retaining the key management personnel can be a challenge.

 Chapter 4 Research Analysis

Objectives

 To study and analyze the perception level of people regarding mutual funds.

 To determine the people goal of people for investment.

 To know about the knowledge of people regarding mutual funds.

 To determine the investment criteria of people.

 To identify how much amount people are invested in mutual funds.

 To study the level of awareness of mutual funds.

Theoretical Underpinning

Dr. Ramandeep Saini (May 2011) analyzed that earlier Uti mutual fund have a monopoly in the market because

no other companies are dealing in mutual funds. But now few years back many mutual fund companies enter in

the market and start dealing in mutual funds and competition will increase in the market. But it is important for

the Indian market to know the perception of people regarding mutual funds. Investors face various issues in

mutual fund schemes, role of financial advisor, source of information and deficiencies in the service provided by

the mutual fund manager. These are the challenges faced by the investor in Indian mutual fund industry.

Gaurav Agrawal, Dr. Mini Jain (Oct 2013) observed that in this competitive market various investment

opportunities are available for the investor. Every investment has its own advantages and disadvantages and but

investor do the research before investing and identify the best opportunity. Various investment opportunities are

available in the market but mutual fund is the best investment mode for the common man because it offers

opportunities to invest in a diversified and professionally managed portfolio at a low cost.

Dr. Rajesh Kumar, Nitin Goel (Dec 2014) observed that in Indian market mutual fund is a challengeable

phenomenon because only in one decade it changed the investment pattern of the investors. Now study of

market regarding mutual fund is essential for every business. With these mutual fund companies also identify

what the investor will expect from them then this new investment pattern will provide benefit to them. Small

investor indirectly enters in the securities market and reducing the risk. This vehicle invites the investor across
the country and enjoys the capital market growth. Mutual fund is more efficient tool for the creation of wealth

and after some time in India it becomes most popular due to the high return and less risk.

Priti Mane (Feb 2016) studied that currently mutual fund is an emerging tool in the Indian market. Now

awareness and perception of people becoming more popular and they enjoy the benefits of investing in mutual

funds. Every company analyze the perception of customer with regards to the mutual funds and identifies what

schemes they prefer, which plan they are opting, why they are selecting that particular plan. Apart from mutual

funds also identify which investment option they prefer like postal savings schemes, Fixed Deposits, Shares and

Bonds etc. And finds that why most of people are not interested in investing this new instrument of investment.

Rajesh Trivedi, Prafulla Kumar Swain (Aug 2017) observed that Indian market becoming more

competitive day by day because due to the supply of various financial instruments needs to be in

equilibrium with respect to the demand perspectives of investors. The main goal of every financial

instrument is to provide maximum return with a minimum risk to its investor. The researcher

collected the data from the mutual fund investor as well as non mutual fund investor and analyzed

the investor decision criteria of investment like financial awareness, risk, liquidity and time etc.

Research Methodology

This report is based on primary data. It helps in collecting the information that is required by the

researcher and assists them for taking the better decision.

Data Sources

Research has been done by primary data collection and primary data is collected through the questionnaire.

Duration of the study

The research was carried out for period of a one months.

Sampling procedure

The sample was collected by sending questionnaire online and as well as through personal visit to the person

and filling up- the questionnaire.

Sample Size
The sample size of my research is 150.

Sample design

Data has been presented with the help of graphs and pie chart.

Data Analysis

Gender: Male/Female

Gender No. of responses ender

Female 62
Male 88
Grand Total 150

Gender

41%

Female
Male

59%

Figure 1 Classification of Gender

The questionnaire was filled by 150 respondents amongst which 59% are males & 41% are females. This shows

that majority of respondents are males.

Qualification: 12 / UG / PG / Professional

Qualification n No of responses
12 5
PG 69
Professional 33
UG 43
Grand Total 150
 Qualification
29% 3%

12
PG
Professional
46%
UG

22%

Figure 2 Qualification of the respondents

The qualifications of the respondents were ranging from 12th, UG, PG and Professional. From the chart 2 we can

analyze that around 46% of the respondents are Post Graduates, 29% of the respondents are Undergraduates,

22% of the respondents are Professional and remaining 3% of the respondents are 12th passed out.

Occupation: Government Job / Private Job / Business / Others

Occupation No of responses
Business 28
Government Job 26
Other 42
Private Job 54
Grand Total 150

Occupation
19%
36%

Business
Government Job
Other
17% Private Job

28%

Figure 3 Occupation of respondents

In occupation group out of the 150 respondents 36% of the respondents are private employees, 28% of the
respondents are doing other occupation like doctor, Engineer, etc, 19% respondents are businessman and 17%

respondents are government employees. It means most of the investor belongs to the private job.

Annual Income

Annual Income No. of responsesesponses

1.5lakhs to 5lakhs 54
10lakhs to 25lakhs 32
25lakhs and above 1
5lakhs to 10lakhs 63
Grand Total 150

Annual Income
36%
42%
1.5lakhs to 5lakhs
10lakhs to 25lakhs
25lakhs and above
5lakhs to 10lakhs

21%

1%

Figure 4 Annual Income of the respondents

The monthly income profile of the investor reflects that 42% of the people belongs to the income level of Rs5

lakhs to Rs10 lakhs and above followed by 36% of the people belong to the income group of Rs1.5 lakhs to Rs5

lakhs.

1. Do you invest?

Do you invest? No. of responses

No 16
Yes 133
Grand Total 149
 11%

No
Yes

89%

Figure 5 Percentage of people like to invest

Out of all the 150 respondents 89% people are investing and remaining 11% people are not investing.

2. What kind of investment you prefer most?

Most preferable investment CNo. of responses.

Gold / Silver 82
Mutual Fund 57
Real Estate 69
Fixed Deposit 107
 Fixed Deposit 107

Real Estate 69

Mutual Fund 57

Gold / Silver 82

Figure 6 Most Preferable investment

From the above graph it can be inferred that out of 150 people, 71.3% people have invested in Fixed Deposit,

54.7% invested in Gold/ Silver, 46% invested in real estate and only 38% people invested in mutual fund.

3. What do you consider the most important factor for investing?

Most important factor for No. of responses

investing
Company Reputation 32
Quick Returns 37
Returns 38
Risk 43
Grand Total 150
 29% 21%

Company Reputation
Quick Returns
Returns
Risk

25%
25%

Figure 7 Most important factor investing in investing mutual funds

Out of all the 150 respondents 29% people prefer to invest where there is high risk 25% people prefer to invest

where there is returns and quick returns and 21% prefer to invest where there is good company reputation.

4. What is your preference in mutual funds?

Preference in mutual fund No. of responses

Balanced Fund 58
Debt Fund 34
Equity Fund 58
Grand Total 150

39% 39%

Balanced Fund
Debt Fund
Equity Fund

23%

Figure 8 People preference in investing mutual funds

From the above pie chart 39% preferred equity portfolio, 38% preferred balanced fund and only 23% preferred

debt portfolio.
5. What type of mutual funds you prefer?

Type of mutual funds preference C No. of responses?

Close ended scheme 64
Open ended scheme 86
Grand Total 150

43%

Close ended scheme

57% Open ended scheme

Figure 9 Preferences of mutual fund Schemes

Out of all the 150 respondents, 57% people prefer open ended scheme and only 43% people prefer close ended

scheme.

6. Which investment pattern you prefer in mutual fund?

Investment pattern No. of response

Anytime 39
Monthly 37
Once in a year 37
Once in six month 37
Grand Total 150
 25% 26%

Anytime
Monthly
Once in a year
Once in six month

25% 25%

Figure 10 Preference of investment pattern

Out of all the 150 respondents, 26% people preferred to invest anytime, 25% preferred to invest once in a year

or once in a six month and only 24% preferred monthly investment plan.

7. From where do you purchase mutual funds?

From where do you No. of responsesunds?

purchase mutual funds?

Brokers 32
Directly from AMCs 59
Others 20
Relatives 39
Grand Total 150

26% 21%

Brokers
Directly from AMCs
Others
Relatives
13%

39%

Figure 11 From where investor buy mutual funds

Out of 150 respondents 40% people prefer to purchase mutual funds directly from AMC’s, 26% through

relatives, 21% through brokers and 13% through other sources.

8. In which company mutual fund you want to invest?

Preference of mutual fund CNo. of responsewant

company to invest?
DSP Blackrock 28
HDFC Mutual Funds 65
Kotak Mutual Funds 26
Others 31
Grand Total 150

21% 19%

DSP Blackrock
HDFC Mutual Funds
Kotak Mutual Funds
17%
Others

43%

Figure 12 Preference of mutual fund company

According to my research most of the people want to invest in HDFC mutual funds and only 19% people prefer

DSP Black rock mutual funds, 17% prefer Kotak mutual funds and 17% prefer other company mutual funds.

9. Do you do any kind of research before investing?

Research before investing No of responsesvesting?

No 36
Yes 114
Grand Total 150
 24%

No
Yes

76%

Figure 13 People do research before investing

Out of all the150 respondents, 76% people do research before investing and 24% people do not research before

investing. This shows that most of the people do the research before investing.

10. What is the goal of investment?

Goal of investment No. of responsesinvestment?

Child Education 34
Child marriage 22
Purchase property 48
Retirement Benefit 46
Grand Total 150

23%
31%

Child Education
Child marriage
Purchase property
15% Retirement Benefit

32%

Figure 14 People goal of investment

From the above pie chart, the goal of 32% investor is to purchase property, 31% investor to enjoy retirement

benefit, 23% investor for child education and 14% investor purchase mutual fund for the child marriage.

11. Where do you find yourself regarding the knowledge of mutual funds?

Knowledge regarding mutual No. of responses

funds
Fully aware 37
Only some points 30
Partial aware 65
Totally ignorant 18
Grand Total 150

12% 25%

Fully aware
Only some points
Partial aware
Totally ignorant

43%
20%

Figure 15 People knowledge regarding mutual funds

From all the 150 respondents, 43% of the respondents are partial aware of mutual funds, 25% are fully aware of

mutual funds, 20% are know some points of mutual funds and 12% are totally ignorant of mutual funds.

12. Which factor stops you to invest in mutual funds?

Factor stops to invest in mutual funds No. of responses

Bitter past experience 22
Difficult in selection of best schemes 38
Lack of knowledge 36
Others 54
Grand Total 150
 15%
36%

Bitter past experience

Difficult in selection of best
25% schemes
Lack of knowledge
Others

24%

Figure 16 Factor stop to invest in mutual funds

From all the 150 respondents, 25% respondent finds difficulty in selection of best schemes, 26% have lack of

knowledge regarding mutual funds, 15% have bitter past experience and 36% have some other reasons not to

investing in mutual funds.

13. What is the monthly amount you will invest in mutual fund?

Monthly amount invest in No. of responses

mutual fund
Rs 10000 to Rs 20000 22
Rs 20000 & above 3
Rs 500 to Rs 5000 64
Rs 5000 to 10000 61
Grand Total 150

15%

41% 2%

Rs 10000 to Rs 20000
Rs 20000 & above
Rs 500 to Rs 5000
Rs 5000 to 10000

43%

Figure 17 Monthly amount invest in mutual fund

Out of all the 150 respondents, 42% respondents will invest Rs500 to Rs5000 in mutual funds, 41% respondents

will invest Rs 5000 to Rs10000 in mutual funds, 15% respondents will invest Rs10000 to Rs20000 and only 2%

will invest more than Rs20000 in mutual funds. It means most of the people will invest Rs500 to Rs10000 in

mutual funds.

14. Do you want to reinvest in mutual fund?

Want to reinvest in CONo. of responses to

mutual fund reinvest in mutual fund?

No 61
Yes 89
Grand Total 150

41%

No
Yes
59%

Figure 18 People reinvest in mutual funds

Out of all the 150 respondents, 59% people want to reinvest in mutual funds and 41% people does not want to

reinvest in mutual fund because they are not fully aware of the mutual funds.

Findings

 Most of the respondents were males.

 In the qualification group most of the respondents were graduate and post graduate and some were
 professional people and 12th passed out were in fewer number.

 In the occupation group most of the people were private employees and least were government

employees.

 Mostly people preferred to invest in fixed deposit then gold and silver and least in mutual funds.

 In the income group, between Rs1.5 lakhs to Rs5 lakhs were more in numbers and the least were in

group of Rs20 lakhs and above.

 Mostly people are concerned with risk factor of mutual fund and the second most preferred factor is

returns and quick returns.

 People more likely to invest in equity fund and then balanced fund and least in debt fund.

 More than 50% people prefer to invest in open ended scheme of mutual fund scheme.

 Mostly prefer to purchase the mutual funds directly from the AMC’s.

 For future investment the maximum respondents preferred HDFC mutual funds.

 The goal of investor for investing to purchase property.

 76% respondents do research before investing because it preserves their income.

 Mostly people have partial knowledge regarding the mutual funds.

 Mostly people likely to invest Rs500 to Rs10000in mutual funds.

Conclusion

After making the report I reached to a conclusion that this project is the study on perception of people regarding

mutual funds. Presently there is a market where many types of funds with different features like period, cost, tax

benefit etc are available. That’s why people are confused that in what kind of mutual fund they should invest

their money. The reason behind there confusion is that they have partial knowledge regarding mutual funds. As

we know that partial knowledge sometimes prove very dangerous because it may make them lose their money in

such schemes.

For Indians money is everything so they are more sensitive investing their money they think many times before
investing it. They feel that they are having enough time so they do the research before investing. And they also

take the suggestion of bank, family and friends etc

People likes to invest in fixed deposit because they feel it is the safest and return are fixed and not having the fear

of losing the money. Mutual fund is linked with the share market and investor take the advice of expert advisor

because in share market risk and uncertainties are also high.

Advertising plays a major role to make people aware regarding the pros and cons of mutual funds. But even after

this investors have to do proper research and study about the terms and conditions of mutual fund in which they

want to invest their money. Mutual fund companies allows its investor to compare the funds on the basis of

different matrices like level of risk, return and price so that investors will be able to take wise decision.

Limitations of the study

 Possibility of error in data collection because some of the people are not so responsive

 The research is confined at the certain part.

 The technique of the research is convenient sampling so it may result in personal biasness.

 Time limitation

Suggestions

 Mutual fund companies also tried to target low income level people.

 Mutual fund companies should also target female customers.

 Mutual fund companies should also promote online trading.

 Starting the awareness program me and campaign to attract large number of investor.

 Appoint expert to understand the need of investor and also provide solution.

 Regular take review from the customer.

 Distribute brochure to the people which having different schemes of mutual funds.
 Chapter 5: SIP Experience

My SIP journey of 60 days was very knowledgeable. It was a new experience for me to work in a company with

the experienced people. My industry mentor was very cooperative and helpful. He gave his valuable time for

teaching me mutual funds and health insurance and also answered my questions patiently.

There were three phases of my SIP. In the initial phase I learnt about the two policies of Aditya Birla Capital

that are Gold Health Insurance and Platinum Health Insurance. And after that I also learnt the three policies of

Future Generali that are Assured Education Plan, Income Plan and Big Income Multiplier. And I also learnt the

two new techniques of making the presentation.

And in the second phase I learnt about the mutual funds of HDFC, DSP Black Rock and Kotak mutual funds

and knowing the mutual funds then made a presentation in a way so that investor can easily understand about

the pros and cons of mutual funds. And in the meantime of internship I was also doing the staff calling.

And the last phase of my internship is the work of IRDA Certification. In the IRDA Certification I collected the

documents of its employees and do the online registration an continuously remind the employees to the

complete the 75 hours training after completing the training then I upload the exam.

And I learnt that the only way to convince people to purchase anything is to relate the benefit of such product

with their real life.

This internship was a learning curve in my career and I am grateful to my college and faculties for providing me

an opportunity to work and learn in such a wonderful environment.

Key Learning

 Learned about mutual funds and SIP.

 Learned about IDRA Certification.

 Learned about health insurance.

 Learned about new techniques of making presentation.

 Learned about the behavior of employee through calling

 Learned to convince the people for purchasing anything.

 Learned how to work under pressure and deadlines.

 Learned to take constructive critics well.

References

 www.aubank.in

 http://www.iosrjournals.org/iosr-jbm/papers/Vol6-issue6/F0664855.pdf

 http://mujournal.mewaruniversity.in/JIR%201-4/15.pdf

 http://ijrmbs.com/vol1issue4/rajesh_k_2.pdf

 http://www.thesij.com/papers/IFBM/2016/February/IFBM-04020060202.pdf

 https://www.researchgate.net/publication/319109300_A_Study_of_Investor's_Perception_Towards_Mut

ual_Fund_Decision_An_Indian_Perspective
 Annexure

QUESTIONNAIRE
Name:
Gender: Male / Female
Qualification: 12 / UG / PG / Professional
Occupation: Government Job / Private Job / Business / Others
Annual Income: a) 1.5lakhs to 5lakhs c) 10lakhs to 25lakhs
b) 5lakhs to 10lakhs d) 20lakhs & above
1. Do you invest?
a) Yes b) No
2. What kind of investment you prefer most?
a) Mutual Funds c) Gold / Silver
b) Real Estate d) Fixed Deposit (tick multiple option)
3. What do you consider the most important factor for investing?
a) Returns c) Company Reputation
b) Risk d) Quick Returns
4. What is your preference in mutual funds?
a) Debt Fund c) Balanced Fund
b) Equity Fund
5. What type of mutual funds you prefer?
a) Open ended scheme b) Close ended scheme
6. Which investment pattern you prefer in mutual fund?
a) Monthly c) Once in a year
b) Once in six month d) Anytime
7. From where do you purchase mutual funds?
a) Brokers c) Relatives
b) Directly from AMCs d) Others (specify)
8. In which company mutual fund you want to invest?
a) HDFC Mutual Funds c) Kotak Mutual Funds
b) DSP Blackrock d) Others (Specify)
9. Do you do any kind of research before investing?
a) Yes b) No
10. What is the goal of investment?
a) Child education c) Child marriage
b) Purchase property d) Retirement Benefit
11. Where do you find yourself regarding the knowledge of mutual funds?
a) Fully aware c) Totally ignorant
b) Partial aware d) Only some points
12. Which factor stops you to invest in mutual funds?
a) Lack of knowledge c) Difficult in selection of best schemes
b) Bitter past experience d) Others
13. What is the monthly amount you will invest in mutual fund?
a) Rs 500 to Rs 5000 c) Rs 10000 to Rs 20000
b) Rs 5000 to 10000 d) Rs 20000 & above
14. Do you want to reinvest in mutual fund?
a) Yes b) No
Any Suggestion……………………………………………………………………………

Thank you for your valuable time………