Bandhan Bank Limited has made a significant move in its investment portfolio by selling a substantial portion of its stake in YES Bank Limited. The transaction, which took place on September 17, 2025, involved the sale of 15,39,34,975 equity shares of YES Bank to SUMITOMO MITSUI BANKING CORPORATION at a price of Rs. 21.50 per share.

Transaction Details

The sale has resulted in a notable reduction of Bandhan Bank's shareholding in YES Bank. According to the disclosure made by Bandhan Bank to the stock exchanges:

Continued Divestment Strategy

This transaction appears to be part of a broader divestment strategy by Bandhan Bank concerning its YES Bank holdings. The bank had previously made a similar disclosure on May 09, 2025, indicating a pattern of reducing its stake in YES Bank.

Regulatory Compliance

Bandhan Bank has duly informed the stock exchanges about this transaction, adhering to the disclosure requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has been simultaneously uploaded on the bank's official website.

Market Implications

While the specific reasons for the sale have not been disclosed, such transactions can often signal strategic shifts in investment portfolios or capital reallocation decisions by financial institutions. The entry of SUMITOMO MITSUI BANKING CORPORATION as the buyer in this transaction may also be noteworthy for market observers.

Investors and market analysts will likely be watching closely to see if this transaction leads to any further developments or changes in the shareholding patterns of both Bandhan Bank and YES Bank.

As the financial landscape continues to evolve, such strategic moves by major banking players can provide insights into their investment strategies and market outlook.

Bandhan Bank , a prominent player in the Indian banking sector, has set ambitious growth targets for the coming years, aiming to significantly outpace the industry despite a general slowdown in loan growth. The bank's strategic shift towards secured lending and its plans for portfolio diversification are at the forefront of its growth strategy.

Ambitious Growth Targets

Bandhan Bank has announced its intention to achieve a 15-17% credit growth Compound Annual Growth Rate (CAGR) over the next three years. This target is particularly noteworthy given the current industry trend, which has seen loan growth decline from 20% to 9.8% over the past five quarters.

Shifting Portfolio Composition

The bank's growth strategy is underpinned by a significant shift in its loan portfolio composition:

• Secured Portfolio Expansion: The secured portfolio has shown robust growth, expanding by 27% year-on-year. This growth is primarily driven by:

  • Housing finance
  • Retail banking
  • Commercial banking

• Microfinance Contraction: In contrast, the bank's microfinance segment has contracted by 15%.

Focus on Secured Lending

Bandhan Bank is accelerating its transition towards secured lending, with impressive progress already made:

• Secured assets increased from 42% of the loan book to 52%.
• The bank expects this proportion to increase by another 5-6 percentage points.

Microfinance Outlook

Despite the current contraction in the microfinance segment, CFO Rajeev Mantri provided insights into the expected recovery:

• Sequential recovery in the microfinance business is anticipated.
• A moderate 5% growth is projected for the current year in this segment.

Impact on Net Interest Margins

The bank acknowledges potential near-term impacts on its net interest margins due to:

• Expected repo rate cuts
• Portfolio shifts toward secured assets

However, the bank expects support for margin recovery from:

• Deposit rate cuts
• Lower slippages in the second half of the fiscal year

Recent Investor Meetings

According to the LODR data, Bandhan Bank recently participated in two significant investor events:

1. Motilal Oswal 21st Annual Global Investor Conference
2. Ashwamedh, Elara India Dialogue

These meetings, attended by various asset management companies, insurance firms, and investment entities, underscore the bank's commitment to transparent communication with investors and analysts about its growth strategies and financial outlook.

As Bandhan Bank navigates the changing landscape of India's banking sector, its strategic focus on secured lending and ambitious growth targets position it as a key player to watch in the coming years. The bank's ability to execute its plans while managing the transition in its loan portfolio will be crucial in achieving its stated objectives.