It has been reported that previous month three leading Banks - Bank of India, Vijaya Bank and HSBC, have assisted the new upcoming bank Bandhan with a loan of Rs 700 crore. Bank of India has given Rs 500 crore with an interest of 13.80%, Vijaya bank has given Rs 50 crore with an interest of 14.50 and HSBC provided a loan of Rs 150 crore.
Bandhan got the approval in April from the apex bank to work as the bank, with in a period of 18 months Bandhan has to establish fully fledge banks with proper infrastructure. The company requires financial help and hiring of the new people to establish full fledge branches. In the ongoing fiscal year 2014/15, the microfinance institution has set a disbursement target of close to Rs 12,000 crore. Sources have stated that more are expected to provide the loans to the Bandhan.