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Bandhan Bank Ltd. ( (IN:BANDHANBNK) ) has provided an announcement.
Bandhan Bank has completed the sale of identified unsecured non-performing asset (NPA) and written-off loan portfolios from its Emerging Entrepreneurs Business and Aspiring Business Group to asset reconstruction companies, in a move aimed at cleaning up its balance sheet. The bank transferred an unsecured NPA portfolio with principal outstanding of Rs. 3,165.25 crore to Asset Reconstruction Company (India) Limited for Rs. 569.75 crore on a security receipts basis, with ARCIL holding 53.25% of the receipts and Bandhan Bank retaining 46.75%. Additionally, it sold an unsecured written-off loan portfolio with principal outstanding of Rs. 3,707.11 crore to Phoenix ARC Private Limited for Rs. 331.97 crore, where Phoenix subscribed to 37.84% of the security receipts and the bank subscribed to 62.16%. These transactions, executed through competitive bidding processes, are expected to reduce the bank’s reported NPAs while keeping it economically invested in recoveries through its substantial holding of security receipts.
More about Bandhan Bank Ltd.
Bandhan Bank Limited is an Indian commercial bank that focuses on serving emerging entrepreneurs, group lending, small business and agriculture borrowers, and aspiring business segments. It operates in the retail and micro, small and medium enterprise (MSME) space, with a strong presence in unsecured lending to low-income and small-business customers across its Emerging Entrepreneurs Business and Aspiring Business Group portfolios.
Average Trading Volume: 434,867
Technical Sentiment Signal: Sell
Current Market Cap: 233.1B INR
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