Bandhan Bank has received regulatory approval for a significant shareholding acquisition by ICICI Prudential Asset Management Company Limited. The Reserve Bank of India granted its approval on February 10, 2026, allowing ICICI Prudential and ICICI Bank group entities to acquire up to 9.95% stake in the private sector bank.

RBI Approval Details

The central bank's approval permits ICICI Prudential Asset Management Company Limited, along with group entities of ICICI Bank Limited, to acquire an "aggregate holding" of up to 9.95% of the paid-up share capital or voting rights in Bandhan Bank Limited. This approval was granted pursuant to the information furnished by the applicant to the RBI.

Regulatory Compliance Requirements

The RBI approval comes with stringent compliance conditions that the applicant must adhere to throughout the acquisition process. The approval is subject to compliance with multiple regulatory frameworks including the Banking Regulation Act, 1949, and Reserve Bank of India (Commercial Banks - Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025.

Additional compliance requirements include:

• Provisions of the Foreign Exchange Management Act, 1999
• Regulations issued by Securities and Exchange Board of India
• Any other applicable statutes, regulations, and guidelines

Key Conditions and Restrictions

The RBI has imposed specific conditions on the shareholding acquisition to ensure regulatory compliance. The approval includes a time-bound clause stating that if the applicant fails to acquire major shareholding within one year from February 10, 2026, the approval shall stand cancelled.

The central bank has also specified that the aggregate holding of ICICI Prudential and ICICI Bank group entities must not exceed 9.95% of the paid-up share capital or voting rights at any time. If their aggregate holding falls below 5%, prior RBI approval will be required to increase it to 5% or more.

Disclosure and Transparency

Bandhan Bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank communicated this development to both BSE Limited and National Stock Exchange of India Limited on February 11, 2026, ensuring transparency for all stakeholders and market participants.

Bandhan Bank shares experienced a significant rally of 6% on January 23, 2026, reaching a one-month high of Rs 151.25 following the release of its third-quarter results for FY26. Despite reporting a substantial decline in net profit, the stock attracted positive attention from brokerages who remain optimistic about the bank's recovery trajectory and improved operational metrics.

Q3 FY26 Financial Performance

Bandhan Bank's Q3 FY26 results presented a mixed picture with contrasting year-on-year and sequential performance trends. The bank's financial metrics for the quarter revealed both challenges and recovery signs.

*Calculated based on reported percentage change

The most notable improvement came in asset quality, with the gross NPA ratio declining significantly to 3.33% in Q3 FY26 from 4.68% in the corresponding quarter of the previous year and 5.02% in the preceding quarter.

Balance Sheet Growth and Deposits

The bank demonstrated steady growth in its core business metrics despite profitability challenges. Deposits expanded by 11% year-on-year to Rs 1.57 lakh crore, while gross advances grew 10% YoY to Rs 1.45 lakh crore. This growth trajectory indicates sustained business momentum and customer confidence in the bank's services.

Brokerage Upgrades and Target Prices

Several prominent brokerages revised their ratings and target prices upward, reflecting confidence in the bank's recovery potential despite near-term challenges.

Recovery Outlook and Key Positives

Motilal Oswal highlighted that Bandhan Bank has undergone a prolonged NPA cycle that significantly impacted its growth and profitability profile, resulting in a tepid 8% average return on equity over the past five years. However, the brokerage expects the bank's operating performance to recover in coming quarters, with asset quality regaining normalcy and margins stabilizing.

JM Financial noted that despite the net profit missing estimates due to elevated credit costs, the current valuation of 0.7x FY28 price-to-book ratio suggests limited downside potential. CLSA emphasized that the bank's margin remained largely stable, providing relief after two quarters of sharp decline, while AUM growth picked up to 8% YoY from 6% YoY.

Market Response and Valuation

The positive market response, with shares jumping 6% from the previous closing price of Rs 142.46, reflects investor confidence in the bank's turnaround story. The rally brought the stock to Rs 151.25, its highest level in a month, suggesting renewed interest from market participants who view the improved asset quality metrics and brokerage upgrades as positive catalysts for future performance.