The sale follows a Swiss Problem course of initiated by the financial institution after receiving a binding base bid from ARCIL. The portfolio comprised unsecured loans that have been greater than 180 days late, with a principal excellent of ₹3,212 crore as of September 30, 2025.
Bandhan Financial institution and ARCIL didn’t reply to ET’s request for remark.
Underneath the Swiss Problem construction performed earlier this month, Bandhan Financial institution invited competing bids that have been required to supply a minimum of a 5% mark-up over the anchor bid, with a minimal money element of 53.25% of the entire bid worth. The preliminary provide from ARCIL, pegged at ₹578.19 crore-around 18% of the excellent principal-triggered the method. Nonetheless, no rival bidders submitted qualifying affords within the second spherical, permitting ARCIL to amass the portfolio, stated sources.
Individually, Bandhan Financial institution had initiated a course of to promote a further excellent of ₹3,720 crore, comprising group loans, small enterprise and agri and small enterprise loans, for about ₹333 crore, the folks cited earlier stated.
As of September 2025, the financial institution’s gross and web non-performing property (NPAs) ratio stood at 5% and 1.4%, respectively. It was excessive primarily resulting from ongoing stress within the microfinance section which has stored the financial institution’s asset high quality below stress. As of March 2025, gross and web NPAs have risen to 4.7% and 1.3% in contrast with 3.8% and 1.1%, respectively, in March 2024.
“The efforts made by the financial institution previously few years in the direction of strengthening its underwriting insurance policies and danger monitoring mechanisms and investments made in know-how for larger effectivity and oversight are anticipated to learn the financial institution’s operations in the long term,” Crisil had stated in a observe. “Within the close to to medium time period, nonetheless, exterior challenges impacting the unsecured asset courses, notably microfinance section, stay a monitorable.”
