Image Source: CNBC-TV18
Bandhan Bank approved the sale of ₹3,212 crore NPA and ₹3,719 crore written-off loan portfolios via Swiss Challenge and auction routes. The portfolios include EEB, Group, Small Business & Agri, and ABG loans. The move aims to improve asset quality and strengthen the bank’s financial position.
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Bandhan Bank has taken a decisive step to strengthen its balance sheet by approving the sale of a substantial portion of its Non-Performing Assets (NPA) and written-off loan portfolios. The decision, ratified by the Board of Directors in a meeting held today, marks a strategic move to improve asset quality and focus on core business operations.
Notable Updates:
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Bandhan Bank will sell its identified NPA portfolio—comprising loans overdue by more than 180 days—with a principal outstanding of ₹3,212.17 crore as of September 30, 2025. The sale will be conducted via the Swiss Challenge method, inviting bids from Asset Reconstruction Companies (ARCs) and other permitted transferees.
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The written-off loan portfolio, with a principal outstanding of ₹3,719.14 crore as of the same date, will be auctioned off through a competitive bidding process.
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Both portfolios include loans from the Emerging Entrepreneurs Business (EEB), Group Loans, Small Business & Agri Loans, and the Aspiring Business Group (ABG) segments, indicating a targeted approach to resolving legacy stress in key business verticals.
Major Takeaways:
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The total value of the portfolios being offloaded exceeds ₹6,931 crore, making this one of the largest NPA sales by a private bank in India this year.
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The Swiss Challenge method and auction route are designed to ensure transparency and maximize recovery for the bank.
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This move is expected to bolster Bandhan Bank’s capital adequacy and enable sharper focus on healthy lending segments.
Source: Exchange Corporate Announcement by Bandhan Bank
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