Bandhan Bank , a prominent player in India's banking sector, has taken a significant step towards improving its asset quality by approving the sale of non-performing assets (NPAs) and written-off assets. The bank's board of directors has given the green light to offload assets with a principal outstanding amount of Rs 32.12 billion through the Swiss Challenge method, marking a crucial move in the bank's efforts to clean up its balance sheet.

Key Highlights of the Asset Sale

• Total Value: The approved sale includes NPAs and written-off assets worth Rs 32.12 billion.
• Sale Method: The bank will employ the Swiss Challenge method for the sale process.
• Asset Categories: The sale 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).

Breaking Down the Asset Sale

The asset sale is divided into two main components:

1. NPA Portfolio:

   • Principal outstanding: Rs 3,212.17 crore
   • Criteria: NPAs with more than 180 Days Past Due
   • Sale Method: Swiss Challenge

2. Written-off Loan Portfolio:

   • Principal outstanding: Rs 3,719.14 crore
   • Sale Method: Auction route

Impact on Bandhan Bank's Financial Position

To understand the potential impact of this asset sale on Bandhan Bank's financial health, let's look at some key figures from its recent balance sheet:

The proposed sale of Rs 32.12 billion (equivalent to Rs 3,212 crore) in NPAs represents a significant portion of the bank's current assets. This move is likely to have a substantial impact on the bank's asset quality and could potentially lead to improved financial ratios in the coming quarters.

Strategic Implications

1. Balance Sheet Cleanup: This initiative demonstrates Bandhan Bank's commitment to addressing asset quality concerns and strengthening its financial position.

2. Risk Management: By offloading non-performing and written-off assets, the bank aims to reduce its risk exposure and potentially improve its credit ratings.

3. Regulatory Compliance: The move aligns with regulatory expectations for banks to maintain healthy asset quality and adequately manage non-performing assets.

4. Investor Confidence: A successful execution of this asset sale could boost investor confidence in the bank's proactive approach to managing its loan portfolio.

Conclusion

Bandhan Bank's decision to sell Rs 32.12 billion worth of NPAs and written-off assets marks a significant step in its efforts to streamline its balance sheet and improve overall asset quality. As the bank moves forward with the Swiss Challenge method and auction process, market observers will be keenly watching the execution and impact of this strategic move on the bank's financial health and market position.

Investors and stakeholders should continue to monitor the progress of this asset sale and its effects on Bandhan Bank's financial metrics in the coming quarters. The success of this initiative could set a precedent for similar moves by other banks in the Indian banking sector, potentially influencing industry-wide practices in managing distressed assets.

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.