Bandhan was set up in 2001 as a not-for-profit entity with the objective of financial inclusion and women empowerment.

The model followed for delivery of microfinance services was individual lending through group formation.

[7] Its public shareholders then included International Finance Corporation; Caladium Investment Pte Ltd (the sovereign wealth fund of Singapore, an arm of GIC); and Small Industries Development Bank of India (SIDBI).

Further, BFHL is a wholly owned subsidiary of Bandhan Financial Services Limited (BFSL).

Other major shareholders of the Bank as on December 31, 2021, are Housing Development Finance Corporation Limited (9.89%), and Caladium Investment Pte.