Finance Minister Arun Jaitley on Saturday said most of the challenges faced by the Indian economy have been created by external factors, even as he expressed confidence in the country’s strong fundamentals to withstand such transient global trends. “They can raise Rs.1.1 lakh crore from the market”, the secretary said.
Advertisement
Jaitley said Bandhan Bank Chairman and MD Chandra Shekhar Ghosh has said that the priority area of the bank will be small and medium enterprises (SMEs).
“I do not have the least doubts that with the cooperation between the centre and the state, we will work together towards the advance growth rate which eventually enables us to bring prosperity”.
As per an estimate, public sector banks would need additional capital of up to Rs.240,000 crore by 2018 to meet the Basel III capital adequacy norms, put in place to guard against a repeat of the situation following the 2008 US financial crisis. He also hinted that the concessions extended to Bihar may also be given to West Bengal but he did not elaborate on this point. Asked about Jaitley’s announcement, Bengal finance and industries minister Amit Mitra said there will be no sops but incentives on the industrial front.
Ghosh, 55, said Bandhan will prioritise on giving loans to the rural unbanked people besides mid-sized regular loans, but avoid large corporate loans altogether in the initial years of its operation.
Certainly, the existing customer-base and experience as a microlender are major advantages of Bandhan, but there are tough challenges emerging on multiple fronts for Bandhan as a full service bank.
India got its first private bank after 11 years.
Bandhan Bank – in Kolkata yesterday.
“There will be differences between the ruling party in West Bengal and one that I belong to but that will never come in the way for development of the state”.
Bandhan is the first micro-finance company to be transformed into a bank. It received the banking licence from the RBI in 2014. Its investors include IFC, SIDBI and Caladium Investment Pte.
Advertisement
Former chief economic advisor to the finance ministry, Ashok Kumar Lahiri, will head a 10-member board which consists of as many as four former top bank executives such as Bhaskar Sen of United Bank of India and B Sambamurthy of Corporation Bank. Ltd.as consultant for the banking project; FIS as the information technology (IT) partner; Aon Hewitt to design the human resources and compensation policy for employees; Madison Media for the advertising campaign; and Ogilvy & Mather to handle the brand-building exercise.
