Bandhan Bank offloads ₹6,872 crore unsecured NPA and written-off loans to ARCs

Private lender Bandhan Bank Ltd on Monday (December 29) said it has concluded the sale of identified unsecured non-performing asset (NPA) and written-off loan portfolios to Asset Reconstruction Companies (ARCs), following approval granted by its board of directors earlier.

The bank had previously, on November 27, 2025, disclosed that the Board approved the sale of identified NPAs and written-off portfolios belonging to the Emerging Entrepreneurs Business (EEB), including group loans and small business and agri loans, and the Aspiring Business Group (ABG), through a bidding process with ARCs or permitted transferees.

As part of the concluded transactions, Bandhan Bank sold an unsecured NPA portfolio with more than 180 days past due, having a principal outstanding of ₹3,165.25 crore as of November 30, 2025, for a consideration of ₹569.75 crore on a security receipts (SR) basis to Asset Reconstruction Companies (India) Ltd (ARCIL).

Also Read: Bandhan Bank targets 15-17% loan growth over 3 years, outpacing industry

ARCIL emerged as the winning bidder under the Swiss Challenge Method. Under the transaction structure, ARCIL subscribed to 53.25% of the SRs amounting to ₹303.39 crore, while the bank subscribed to the remaining 46.75% of SRs amounting to ₹266.36 crore.

In a separate transaction, the bank sold an unsecured written-off loan portfolio with a principal outstanding of ₹3,707.11 crore as of November 30, 2025, to Phoenix ARC Private Ltd for ₹331.97 crore on an SR basis.

Phoenix emerged as the highest bidder through an auction process. Phoenix subscribed to 37.84% of the SRs amounting to ₹125.60 crore, while Bandhan Bank subscribed to 62.16% of the SRs amounting to ₹206.37 crore.

Shares of Bandhan Bank Ltd ended at ₹145.85, up by ₹0.97, or 0.67%, on the BSE.

Also Read: Bandhan Bank sees margin recovery from third quarter, targets 11-12% credit growth, says MD Sengupta