Bandhan Bank Sells Rs 3,165-Crore NPA Portfolio, Rs 3,707-Crore Written-Off Loan Portfolio
Bandhan Bank Ltd. has offloaded its bad loans portfolio worth an aggregate amount of Rs 6,872 crore for a sum of Rs 901.72 crore to asset restructuring companies, according to an exchange filing on Monday.
The portfolio consisted of non-performing assets and written-off loan portfolios of the bank which belonged to its Emerging Entrepreneurs Business. These included group loans and small business and agri loans, as well as aspiring business groups.
Details of the NPA Portfolio Sale
The bank sold its unsecured NPA portfolio having principal outstanding of Rs. 3,165.25 crore, as on Nov. 30, 2025, for a consideration of Rs 569.75 crore on Security Receipts basis to Asset Reconstruction Companies (India) Ltd. which was the winning bidder under Swiss Challenge Method.
ARCIL has subscribed to 53.25% of security receipts (SR) amounting to Rs. 303.39 crore, whereas the bank has subscribed to 46.75% of SRs amounting to Rs 266.36 crore, the filing said.
Written-Off Loan Portfolio Sale
Bandhan Bank also offloaded its unsecured written-off loan portfolio, having principal outstanding of Rs 3,707.11 crore, as on Nov. 30, 2025, to Phoenix ARC Pvt. at Rs 331.97 crore, which was the highest bidder through the auction process, on SR basis.
Phoenix has subscribed to 37.84% of SRs amounting to Rs. 125.60 crore, whereas the bank has subscribed to 62.16% of SRs amounting to Rs 206.37 crore, according to the release.
Impact on Bandhan Bank’s Stock Price
Shares of Bandhan Bank closed 0.67% higher at Rs 146.05 apiece on the National Stock Exchange on Monday, compared with a 0.38% decline in the benchmark Nifty. The stock has fallen 8.18% on a year-to-date basis.
Out of the 28 analysts tracking the company, 11 maintain a ‘buy’ rating on the stock, 11 recommend a ‘hold’ and six suggest ‘sell’, according to Bloomberg data. The average of 12-month analysts’ price target implies a potential upside of 20.7%.
What This Means for Indian Investors
The sale of the bad loans portfolio is a positive step for Bandhan Bank, as it will help the bank to reduce its non-performing assets and improve its financial health. This move is also expected to boost investor sentiment, as it shows that the bank is taking proactive steps to address its asset quality issues.
For Indian investors, this news is significant, as it highlights the importance of monitoring the financial health of banks and other financial institutions. Investors can learn more about banking sector news and stay updated on the latest developments in the Indian stock market.
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Investing in the Indian stock market can be a lucrative opportunity, but it requires a thorough understanding of the market and its trends. Investors can start by learning about how to invest in the stock market and exploring different investment options, such as major stock market indices and stock market analysis.
Conclusion
In conclusion, the sale of Bandhan Bank’s bad loans portfolio is a significant development that highlights the bank’s efforts to improve its financial health. For Indian investors, this news is a reminder of the importance of staying informed about the latest developments in the Indian stock market and taking a proactive approach to investing.