Our Bureau
Mumbai
Bandhan Bank announced on November 27, 2025, its decision to sell non-performing assets (NPAs) and written-off loan portfolios via a bidding process involving asset reconstruction companies. The bank’s outstanding NPA portfolio stood at Rs 3,212 crore (approximately $359.4 million), while the written-off loan portfolio totalled Rs 3,719 crore. This move is aimed at cleaning the bank’s balance sheet and improving asset quality amid rising bad loans predominantly in its microloan segment.
The auction will follow the Swiss Challenge method, focusing on NPAs that are more than 180 days past due. Bandhan Bank has been grappling with increased bad loans over recent quarters, leading to higher provisioning expenses that nearly doubled to Rs 1,153 crore in the quarter ending September 30, 2025. This sale, valued at over Rs 6,931 crore in total, hopes to reduce the bank’s stressed assets and strengthen its financial health.
Analysts maintain a cautious outlook on the lender, with an average “hold” rating and median price target of Rs 177.50, indicating moderate confidence in the bank’s recovery strategy.
