Business
In April, the Kolkata-based lender’s founder announced he would step down to take a broader strategic role at Bandhan Financial Holdings, the bank’s holding company.
Updated : Jul 15, 2024, 10:55 AM IST
The inspirational story of Chandra Shekhar Ghosh's journey from humble beginnings to become the founder and CEO of Bandhan Bank is one of perseverance. He recently announced to step down from his position after the completion of his tenure in July 2024. The Kolkata-based bank has a market cap of Rs 29787 crore as of April 8. Ghosh has retired from Bandhan Bank and will now play a strategic role within the Bandhan Group.
In 1960, Ghosh was born in Agartala, Tripura, into a family that was struggling financially. The little candy store owned by his family gave them just enough money to get by. Ghosh was adamant about continuing his study in spite of the obstacles.
Following his schooling, Ghosh went to Bangladesh to continue his education. He graduated from Dhaka University in 1978 with a degree in statistics despite financial difficulties. Ghosh lived in an ashram and tutored youngsters to support himself.
When Chandra Shekhar was hired by a Bangladeshi International Development Non-Profit Organisation (BRAC) in 1985, his life took a dramatic change. Here, he saw firsthand how modest financial support can drastically alter the lives of women living in remote villages. This gave Ghosh the idea to decide to imitate the model in India.
After moving back to Kolkata in 1997, Ghosh started working for the Village Welfare Society before starting his own business. He established Bandhan, a microlending organisation, in 2001 intending to lend money to women. Ghosh began modestly, investing an initial Rs 2 lakh that he borrowed from friends and family. Bandhan made great progress in spite of many obstacles, such as having only 12 staff. By 2002, the company had given about 1,100 women loans totaling Rs 15 lakh.
The Reserve Bank of India (RBI) registered Bandhan as a Non-Banking Finance Company (NBFC) in 2009. The lives of almost 80 lakh women were positively impacted by Ghosh's vision and determination, which had a revolutionary effect. Ghosh took advantage of the opportunity to apply for a banking licence when the RBI opened applications for the establishment of banks in 2013. Finally, after obtaining the banking licence, Bandhan Bank started operations in 2015.
The bank, which has a market valuation of Rs 28,997 crore, provides banking services to 3.26 crore clients through 6,262 locations in 35 states and union territories. Ghosh's incredible story of going from selling milk to becoming a wealthy CEO inspires a lot of people by showing how hard work and perseverance can overcome obstacles and lead to success.