Bandhan Bank board clears sale of NPAs and written-off loan portfolios

Bandhan Bank on Thursday approved the sale of specific non-performing assets (NPAs) and written-off loan portfolios through a bidding process involving Asset Reconstruction Companies (ARCs) and other permitted transferees.

The decision was taken at the Board meeting held on November 27, 2025.

The portfolios identified for sale include loans from the Emerging Entrepreneurs Business (EEB) segment—comprising group loans, small business loans and agriculture loans—as well as the Aspiring Business Group

(ABG).

The bank will initiate a bidding process under the Swiss Challenge method for NPAs with over 180 days past due, carrying a principal outstanding of ₹3,212.17 crore as of September 30, 2025. Separately, Bandhan Bank will auction its written-off loan portfolio, which has a principal outstanding of ₹3,719.14 crore.

The move aims to clean up the balance sheet and improve asset quality by offloading stressed assets to ARCs and other eligible buyers.

Bandhan Bank financial results

Bandhan Bank on October 30, posted an 88% year-on-year drop in its September-quarter net profit to ₹112 crore, sharply missing the CNBC-TV18 estimate of ₹313 crore. Net interest income also fell 11.8% to ₹2,588.6 crore from ₹2,934 crore a year earlier, below expectations.

The bank’s gross advances grew 7.2% to ₹1.40 lakh crore, while total deposits rose 10.9% to ₹1.58 lakh crore.