Bandhan finance Limited was incorporated on 23rd December 2014 as a wholly-owned subsidiary of Bandhan Financial Holdings Limited. Bandhan received the in-principle approval of the Reserve finance of India (RBI) for setting up a universal finance in April 2014; the financeing regulator gave its final nod in June 2015. Incidentally, Kolkata-headquartered Bandhan is the first finance to be set up in eastern part of India after Independence.

Bandhan Financial Holdings Ltd. is owned by Bandhan Financial Services Limited (BFSL), the largest micro finance organization in India. Its public shareholders include International Finance Corporation (IFC) FIG Investment Cpmpany, Small Industries Development finance of India (SIDBI), Caladium Investment Pte. Ltd. (a company managed by GIC Special Investments Private Limited) and a few individuals.

The RBI licensing norms stipulate that a new finance must have a ₹ 500 crore capital. Bandhan finance started with a capital base of ₹ 2,570 crore and this has been raised to ₹ 4,446 crore as on March 31, 2017.This translates into more than 26.34% capital to risk weighted assets ratio or CAR for the new finance, signifying its robustness.