TRANSFORMATION FROM MICRO FINANCING UNIT TO BANK: CASE STUDY OF BANDHAN, KOLKATA.

Microfinance institutions serve as an addition to banks and in some sense a superior because along with providing credit they also offer other financial services like savings, insurance and non-financial services like personal counseling provide guidance and support to start small business etc. Central government and state governments are taking efforts for poverty alleviation. Many programs are currently active in various regions of India. Along with them the microfinance is also contributing through their work towards financial inclusion. In the past few decades it has actually provided money to the unnoticed communities and thereby helped to get rid of poverty. Mr. Chandra Shekhar Ghosh founded Bandhan Financial Services Limited (BFSL) in the year 2001. This micro finance institution is involved in providing loans to small customers, those who have no or less way in to official banking services. In June 2015, the banking regulator gave its final permission. Bandhan Financial Holdings is owned by Bandhan Financial Services Limited (BFSL), the largest micro finance organization in India. The bank focuses on Eastern India as banking penetration is still poor in the region but at the same time want to expand their loan portfolio by increasing lending funds to retail business and Micro and Small Medium Enterprises.