All the existing microfinance businesses of the company and clients will be transferred to the bank
Microfinance group Bandhan Financial Services has received regulatory approval to begin operating as a bank from the end of August, its Chairman and Managing Director, Chandra Shekhar Ghosh, said on Wednesday.
The group received its final banking license from the Reserve Bank of India earlier on Wednesday and now plans to work in 27 Indian states, with nearly 500 to 600 bank branches and 10 million customers at its launch, Ghosh said.
All the existing microfinance businesses of the company and clients will be transferred to the bank, he added.
Bandhan had received an "in-principal" approval from the central bank along with Mumbai-based IDFC <IDFC.NS> in April last year, and was required to start operations within a deadline of 18 months.