Bandhan Bank has issued a clarification stating it is unaware of any reported stake sale involving its promoter entity and has received no communication on the matter, following reports of potential Abu Dhabi investor discussions. In an exchange filing, the bank said it was not aware of any such development and had not received any communication in this regard. The clarification comes after The Economic Times reported that Abu Dhabi-based International Holding Company (IHC) and First Abu Dhabi Bank were in early-stage talks to acquire a strategic stake in Bandhan Financial Services Ltd. (BFSL), the bank's promoter entity. The stock had rallied as much as 8% on Tuesday, hitting an intraday high of ₹171.68 on the NSE after the initial investment reports, though the latest clarification may temper investor enthusiasm. The bank further added that since it is unaware of any such development, it is not in the position to comment on the correctness of the news item and there is no material impact of this article on the bank.
IHC, the investment company of Abu Dhabi's deputy ruler and national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, is among early-stage discussions to acquire a stake in Bandhan Financial Services (BFSL), the promoter of Bandhan Bank. According to The Economic Times, First Abu Dhabi Bank and Qatar Investment Authority are also being canvassed for potential investments, along with private equity funds including Carlyle and EQT. The proposed stake sale could also provide an exit route for Singapore's sovereign wealth fund GIC and the International Finance Corporation (IFC), which jointly hold a 30.3% stake in BFSL valued at an estimated $500 million to $600 million. Other shareholders include SIDBI with an 8.1% stake, the Financial Inclusion Trust and North East Financial Inclusion Trust with 40.7% combined, and the Bandhan Employees' Welfare Trust with 14.6%. As per the latest reports, several Gulf-based banks and sovereign wealth funds have been approached regarding a potential investment in BFSL, with the move aiming to provide early-stage financial investors with an exit opportunity as BFSL seeks to reduce its 37.5% stake in the bank to comply with RBI licensing norms of 26% by 2030.
Bandhan Bank reported robust Q1FY27 results with net profit surging 35% year-on-year to ₹501.66 crore, demonstrating strong operational performance. The bank's interest income advanced 2.8% to ₹5,630.55 crore in the first quarter of the current fiscal year, compared to ₹5,475.61 crore in the same quarter of the previous year. The lender's asset quality showed significant improvement, with gross non-performing assets (NPA) percentage declining by 181 basis points to 3.15% in the June quarter, compared to 4.96% in the same quarter of the previous financial year. As per the shareholding pattern, promoter Bandhan Financial Services Limited owns a 37.5% stake in the private sector bank headquartered in Kolkata. The bank operates 1,988 branches with a total customer base of 31.8 million, including one of India's largest microfinance loan books of ₹35,000 crore. The net profits for the June quarter were further aided by the reduction in provision for bad loans, with provisions declining 40% YoY to ₹682.58 crore compared with ₹1,146.90 crore in the corresponding quarter of the previous financial year.
The potential investment comes as Bandhan Financial Services undertakes a major restructuring exercise aimed at facilitating exits for existing shareholders, monetising stakes in group businesses and raising capital for Bandhan Bank. As reported by Moneycontrol, the group had appointed Jefferies to advise on the restructuring, potentially its first major exercise of this kind in nearly 25 years. The restructuring could extend beyond BFSL's shareholder base, with the group exploring partial stake sales in Bandhan Bank and its asset management business. Bandhan Financial Holdings, a subsidiary of BFSL, owns approximately 60% of Bandhan AMC, while GIC and ChrysCapital together hold the remaining 40%, with the group exploring potential investors who could provide liquidity to existing shareholders in the asset management business. As of March 31, BFSL held 59.98% in Bandhan Asset Management Company and 97.16% in Bandhan Life Insurance Company, with the group exploring potential investors who could provide liquidity to existing shareholders in these businesses. Kranthi Bathini from WealthMills Securities suggested that institutional participation could rise in Bandhan Bank after this development and could lead to a turnaround, citing RBL Bank's previous transformation story.
Bandhan Bank shares rallied 9% to touch an intraday high of ₹171.68 apiece on Tuesday, October 13, amid reports that IHC is to buy a stake in the private sector lender. At 2:40 PM, Bandhan Bank shares were trading at ₹170.29 apiece on the National Stock Exchange, gaining 8.12%. From the beginning of the year, Bandhan Bank shares have jumped 18.7%, with the stock trading at around one-time its book value. However, the bank's stock has faced pressure over the past three and five years, correcting 30% and 49% respectively. The benchmark Nifty 50 index traded 118 points or 0.53% higher at 22,480 during Tuesday's session. Bandhan Bank shares have gained 3.23% over the past week, indicating a recent recovery in the stock, though they have declined 4.01% over the past month. Over a longer period, Bandhan Bank shares have delivered positive returns of 17.53% year to date, while gaining a modest 0.58% over the past year. The long-term performance has been weaker, with its share price declining 29.60% over three years and 48.36% over five years. The bank has a total market capitalisation of ₹27,449.12 crore as of October 13, 2026, with the restructuring exercise potentially marking its first major exercise in nearly 25 years.
