Bandhan Bank slashes microfinance loan rates

Kolkata, July 19 (KNN) Bandhan Bank has reduced its lending rate for micro loans by 0.6% or 60 basis points (bps) from Monday bringing down the rates from 20.5 per cent to 19.90 per cent.

Bandhan Bank has pared its micro loan rate by 2.5 percentage points or 250 bps in three stages in less than 11 months since it started operations as a universal bank.

Currently, Bandhan Bank operates across 29 Indian states and Union Territories through a network of 688 branches, 2,022 Doorstep Service Centres (DSCs) and 237 ATMs. Its more than 8.77 million customers are being served by the bank with 21,000 employees.  The bank has mobilized close to Rs. 15,000 crore deposits.

Bandhan is the first bank to be set up in eastern part of India post-Independence. This is also the first instance of a microfinance entity being transformed into a universal bank.

The Kolkata-headquartered bank has two divisions -- micro banking and general banking, offering a suite of retail financial solutions, including a variety of savings and loan products. Currently, the savings bank account interest rate is 6% for balance above Rs.1 lakh and 4.25% for balance up to Rs.1 lakh. For term deposits, the maximum interest rate offered is 8.25 % for one to three years, with an additional 0.5% for senior citizens. (KNN/ AR)