Bandhan Bank has successfully completed its major asset cleanup initiative by selling non-performing assets (NPAs) and written-off portfolios worth Rs 6,872.36 crore to Asset Reconstruction Companies (ARCs) for a total consideration of Rs 901.72 crore. The transaction, which was approved by the bank's board in November, represents a significant milestone in the bank's efforts to strengthen its balance sheet and improve asset quality.

Transaction Details

The asset sale was executed through two separate transactions with different ARCs, following the bank's strategic approach to portfolio diversification:

NPA Portfolio Sale to ARCIL

The bank successfully sold its unsecured NPA portfolio with more than 180 Days Past Due to Asset Reconstruction Companies (India) Limited (ARCIL) through the Swiss Challenge Method. The transaction details include:

Written-off Portfolio Sale to Phoenix ARC

The second component involved the sale of the bank's unsecured written-off loan portfolio to Phoenix ARC Private Limited through an auction process:

Strategic Impact on Financial Position

The completion of this asset sale marks a crucial step in Bandhan Bank's balance sheet optimization strategy. The transaction encompasses assets from the bank's Emerging Entrepreneurs Business (EEB), including group loans and small business agri loans, as well as the Aspiring Business Group (ABG).

The bank's retention of significant portions of Security Receipts in both transactions demonstrates its continued interest in potential recoveries while transferring the primary collection responsibility to specialized ARCs. This approach allows the bank to clean up its books while maintaining upside potential from future recoveries.

Regulatory Compliance and Market Impact

This transaction aligns with regulatory expectations for banks to actively manage their non-performing assets and maintain healthy asset quality ratios. The successful completion of the sale process, involving both Swiss Challenge and auction methods, showcases the bank's systematic approach to asset resolution.

The move is expected to positively impact the bank's key financial metrics, including gross NPA ratios and return on assets, while freeing up capital for productive lending activities. Market observers will closely monitor the bank's upcoming quarterly results to assess the full impact of this strategic initiative on its financial performance.

Bandhan Bank has successfully concluded its postal ballot process with shareholders approving the appointment of two key directors to strengthen its board composition. The voting results, announced on December 12, 2025, confirmed both proposed appointments received requisite majority approval through the remote e-voting process.

Voting Results and Approval

The postal ballot process, conducted exclusively through remote e-voting from November 12 to December 11, 2025, saw significant shareholder participation. CS Hansraj Jaria, the appointed scrutinizer, confirmed that both resolutions were passed with the required majority.

Approved Appointments

Avijit Mukerji - Non-Executive Non-Independent Director

The appointment of Mr. Avijit Mukerji (DIN: 03534116) as Non-Executive Non-Independent Director was approved through an ordinary resolution. Nominated by Bandhan Financial Holdings Limited (BFHL), the bank's promoter, Mr. Mukerji brings over three decades of experience in audit and assurance as a former partner at PricewaterhouseCoopers India.

Gauri Prosad Sarma - Independent Director

Shareholders approved the appointment of Mr. Gauri Prosad Sarma (DIN: 09107885) as Independent Director through a special resolution. The former Chief General Manager at Punjab National Bank brings 37 years of banking experience, with expertise in digital banking, fintech, and IT operations.

Director Profiles and Expertise

Regulatory Compliance

The postal ballot process was conducted in compliance with the Companies Act 2013, SEBI LODR Regulations 2015, and Banking Regulation Act 1949. In accordance with Section 12(2) of the Banking Regulation Act, voting rights exceeding 26.00% of total voting rights were restricted, affecting Bandhan Financial Holdings Limited's voting capacity.

Strategic Significance

These appointments align with Bandhan Bank's strategy to enhance board expertise across critical areas. Mr. Mukerji's audit and assurance background is expected to strengthen financial oversight, while Mr. Sarma's extensive banking and digital transformation experience supports the bank's technological advancement initiatives.

The successful completion of this postal ballot process demonstrates strong shareholder confidence in the bank's governance structure and strategic direction, particularly in areas of financial management, digital banking, and risk assessment.