Bandhan Bank supports SMEs to create more job opportunities

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Bandhan bank is an Indian banking and financial services company headquartered in Kolkata. Bandhan Bank initially launched its operations with 501 branches in the country. The company, started as a micro finance institution later received final approval from the Reserve Bank of India (RBI) in June and commenced its operations as a  commercial bank.

Chandra Shekhar Ghosh Chairman and Managing Director of  Bandhan Bank announced that the priority area of the bank will be supporting small and medium enterprises (SMEs). Small entrepreneurs ranging from shopkeepers to hawkers generate almost 11-12 crore jobs in this country and are today form the backbone of Indian economy. Finance Minister Arun Jaitley proposed that if the private sector initiative like Bandhan Bank supports   the small enterprises in the effort of funding at the grass-root level, they that they can grow effectively at their own feet. He added that if in the eastern parts of the country, in states like West Bengal, if they are able to create small entrepreneurs in lakhs it can be seen as the country’s response to agrarian poverty which is building up.

The government’s objective is to extend over Rs 1 lakh crore worth of funds to SMEs across the country as SMEs usually repay what they borrow and the banks’ Non Performing Assets are not of lending to these sectors. He added that if in the eastern parts of the country, in states like West Bengal, if they are able to create small entrepreneurs in lakhs it can be seen as the country’s response to agrarian poverty which is building up.

.If funding to this unfunded sector continues they can generate more job opportunities in the country. They take very little assistance from the state to perform their operations and go back perform their duties and return what they borrow. Jaitley also said that the Central government has set up a MUDRA agency which will slowly evolve as MUDRA Bank whose main purpose is to fund these unfunded sectors and help in their growth.

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