It’s rightly said that never forget or give up on people who supported you when you were nothing. Founder and managing director of Bandhan Bank, Chandra Shekhar Ghosh has stayed true to the statement like none other.
In a recently reported development, Bandhan Bank’s trust worth Rs. 6,710 is held by approximately 3,000 people who hold shares at Rs. 499 each, thus becoming millionaires overnight as any of them, at their can cash their investments and take home the amount. To many of the shareholders, this has come to an extremely fortunate surprise.
Bandhan started off in 2001 as a microfinance country and these were the people who supported Ghosh with his investment. Today, Bandhan has now emerged as India’s 8th most valuable bank by market capitalization.
Jointly, those 3,000 people own 14.61% in Bandhan Financial Services Ltd (BFSL) and hold around 82.28% of the ban’s post-issue equity capital. Apart from that, another small group of approximately 40 employees separately own 3.39% in BFSL. Their stake in the company totals up to Rs. 1,558 crore.
In an interview, Ghosh recalled, “When (in 2009) I was forming the NBFC (non-banking financial company), who would trust me to provide capital?” he asks. So employees came together and contributed small sums of money—Rs. 10,000-20,000 each.” When more people showed interest in investing, he decided to form the Bandhan Employees Welfare Trust. If anyone wishes to cash out their investment, they must sell within the trust following an established arrangement.
He also informed they he had complete belief in the early days that the only the people who have themselves suffered poverty could work for the underprivileged, “Pay wasn’t great, not surprisingly, but all those people who had confidence in him have today been hugely rewarded”.
The Bank currently has 28,000 employees and the rate of abrasion is about 8% a year. Approx. 15,000 people have joined the past 2 years. The bank was granted a little over 2 million stock options at the time they went public.