Bandhan Bank Sells ₹6,800+ Crore Stressed Assets to ARCIL, Phoenix ARC to Cut NPAs

Bandhan Bank on Monday announced that it has sold stressed loan portfolios worth more than ₹6,800 crore to 2 asset reconstruction companies — ARCIL and Phoenix ARC. The move is aimed at lowering non-performing assets (NPAs) and improving balance sheet quality.

Assets Sold to ARCIL

The bank transferred an unsecured NPA portfolio that was overdue by more than 180 days to Asset Reconstruction Company (India) Ltd (ARCIL).

• Principal outstanding: ₹3,165.25 crore
• Sale value: ₹569.75 crore
• ARCIL subscribed to 53.25% of the security receipts (SRs)
• Bandhan Bank retained the remaining 46.75%

Assets Transferred to Phoenix ARC

Separately, Bandhan Bank sold an unsecured written-off loan portfolio to Phoenix ARC.

• Principal amount: ₹3,707.11 crore
• Sale value: ₹331.97 crore
• Phoenix ARC subscribed to 37.84% of the SRs
• The bank retained 62.16%

Impact on the Bank

These transactions are expected to help clean up Bandhan Bank’s balance sheet, reduce stress from bad loans, and allow the lender to focus more on core lending operations.

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Bandhan Bank Share Price Movement

Bandhan Bank share price (NSE: BANDHANBNK) closed at ₹145.85 on December 29, gaining ₹0.97 or 0.67% for the day. The stock opened at ₹145.50, touched an intraday high of ₹146.55, and slipped to a low of ₹143.48. The bank’s market capitalisation stands at ₹23.53K crore, with a P/E ratio of 19.13. Bandhan Bank has a 52-week high of ₹192.48 and a 52-week low of ₹128.16. It offers a dividend yield of 1.03%, with a quarterly dividend of ₹0.38 per share.

Conclusion

By selling over ₹6,800 crore worth of stressed assets, Bandhan Bank has taken a key step toward improving asset quality and strengthening its financial position, which could support healthier growth going forward.

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