The Indian unit of UK-based commercial institution Standard Chartered Bank (SCB) recently notified MicroCapital that it has disbursed a loan of INR 750 million (USD 12 million) to Kolkata-based Bandhan Financial Services, which offers loans for microenterprise and health emergencies. The purpose of the loans is for on-lending for new or existing microenterprises .
SCB India and Bandhan have partnered since 2006. SCB India has 100 branches in the country, and SCB reported assets of USD 637 billion in 2012. As of 2012, Bandhan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 983 million, a gross loan portfolio of USD 815 million, 4.4 million active borrowers, return on assets of 6.44 percent and return on equity of 37.6 percent.
By Meraj Husain, Research Associate
About Standard Chartered Bank
Founded in 1969, Standard Chartered Bank is a financial services company based in
the United Kingdom. In 2012, SCB reported total assets of USD 637 billion, return on equity of 12.8 percent and USD 1 billion invested in MFIs in Asia and Africa.
About Bandhan Financial Services
Bandhan Financial Services Private Limited is a microfinance institution (MFI) based in Kolkata, India, that was founded in 2002. As of 2011, it operates approximately 1,750 branches in 18 states in India. It offers microenterprise loans as well as loans for health emergencies. As of 2012, Bandhan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 983 million, a gross loan portfolio of USD 815 million, 4.4 million active borrowers, return on assets (ROA) of 6.44 percent and return on equity (ROE) of 37.6 percent. The institution does not accept deposits.
Sources and Additional Resources
 Information provided to MicroCapital by Standard Chartered Bank India, January 2014
Category: Payday loans