Bandhan Bank`s Valuation and Sustainability: Beyond the IPO

India, the world’s largest democratic republic, faced a long and demanding struggle to root out the evils of blatant socio-economic disparity which, if unchecked, could destroy the very fabric of its democracy. Though the Government of India (GoI) and state governments launched various poverty alleviation programs and took several initiatives to provide formal finance to the disadvantaged sections of society, the penetration of these was not satisfactory. “Access to formal financial services is essential for reducing poverty,” said Onno Ruhl, World Bank Country Director in India. According to estimates by the World Bank and the IMF World Economic Outlook, the average growth rate of the Indian economy over a decade (from 2009-2018) was estimated at 7%. As of April 2018, India had the second largest unbanked population (190 million) after China (225 million), according to the World Bank...