According to a regulatory filing, SBI Mutual Fund has increased its holding in private sector lender Bandhan Bank through 16,98,478 shares purchased on May 20, 2026. The mutual fund's cumulative holding across various schemes now stands at 8,12,46,734 equity shares, representing 5.0432% of Bandhan Bank's total paid-up share capital. This represents a significant increase that has taken the mutual fund's position above the 5% regulatory threshold for substantial shareholding disclosure requirements, with the exact acquisition price not disclosed in the regulatory filing. The shares of Bandhan Bank closed at ₹192.2 per unit on May 20 on the BSE, while on Friday, the scrip was trading up 1.39% at ₹193.80 per unit.
The additional share purchase represents SBI Mutual Fund's continued confidence in Bandhan Bank's prospects and strategic approach to the private banking sector. Crossing the 5% ownership threshold is considered a significant institutional milestone because such holdings require mandatory disclosures under market regulations. This move comes as India's biggest mutual fund house by assets under management seeks to expand its presence in the private banking space, with the investment reflecting growing institutional confidence in the bank's long-term business outlook and operational recovery efforts.
The stake increase was achieved through fresh share purchases from the open market, demonstrating SBI Mutual Fund's active approach to building its position in Bandhan Bank. Such institutional investments often attract attention because they may indicate expectations of improved earnings, stronger balance sheet performance, or future growth potential. The acquisition strategy reflects the mutual fund's commitment to expanding its presence in the private banking sector, with the latest purchase made on May 20, 2026 under regulatory compliance requirements for substantial shareholding disclosures.
Bandhan Bank delivered impressive financial results for Q4 FY26, with PAT jumping 68% year-on-year to ₹530 crore and 159% quarter-on-quarter growth. The bank's net interest income increased 1.4% YoY to ₹2,800 crore, while overall revenue grew 3.2% YoY to ₹3,570 crore. Asset quality showed significant improvement with gross NPA declining to 3.3% from 4.7% and net NPA falling to 1% from 1.3% year-on-year. The bank's operating profit declined 8.3% YoY despite provisions of ₹677 crore during the quarter.
Despite longer-term challenges with the stock losing 20% over three years and 35% in five years, Bandhan Bank shares have shown strong momentum in recent months. The stock has risen 10.5% in a month, 14% in three months, and 35% year-to-date. MD & CEO Partha Pratim Sengupta emphasized the bank's focus on customer-centric, digital-led growth by enhancing distribution channels, expanding product suite, and leveraging data-driven insights for sustainable growth. The increase in ownership by one of India's largest mutual fund houses is being viewed by market participants as a sign of confidence in the bank's long-term business outlook and operational recovery efforts.
