ET was first to report in its March 13 version that BFSL was trying to give its long run traders an exit.
BFSL, led by Bandhan founder Chandra Shekhar Ghosh, has been working with advisers Jefferies to seek out strategic traders for 25-32%.
ET BureauEarly traders GIC & IFC collectively maintain 30% in BFSL, eager to exit
As much as $600m of Stake
That can open up an exit possibility for GIC of Singapore and the Worldwide Finance Company (IFC), backers of the agency for greater than a decade. Collectively, these two held 30.3% of BFSL on the finish of March, and have been searching for a full or partial exit, mentioned the folks cited. Their stake alone could possibly be price $500-600 million, they mentioned.
Different traders embody Small Industries Improvement Financial institution of India (Sidbi), which owns 8.1%. Monetary Inclusion Belief and North East Monetary Inclusion Belief personal a complete 40.7%. The Bandhan Workers’ Welfare Belief holds 14.6%. If different shareholders additionally select to exit, it can result in a a lot bigger transaction.
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BFSL has two subsidiaries–Bandhan Applied sciences, an IT providers and AI-led expertise firm, and Bandhan Monetary Holdings, the holding firm of Bandhan Financial institution, Bandhan AMC, Bandhan Mutual Fund Trustee, Bandhan Funding Managers (Mauritius) and Bandhan Life Insurance coverage.As of March 31, BFSL owned 59.98% of Bandhan AMC and 97.16% of Bandhan Life Insurance coverage Co. Singapore’s GIC and Chrys Capital are different traders within the asset administration agency.
Bandhan Monetary Holdings Ltd had a stake of 37.5% within the financial institution on the finish of June. As per the financial institution’s licensing settlement with the Reserve Financial institution of India, it should scale back the stake to 26% by 2030.
Banks and sovereign funds have been broadly canvassed within the Gulf for a stake in BFSL, mentioned the folks cited. They’re mentioned to incorporate First Abu Dhabi Financial institution and Qatar Funding Authority in addition to a couple of PE buyout funds akin to Carlyle, EQT.
“We don’t touch upon market hypothesis,” Bandhan Financial institution chairman Ghosh informed ET.
A First Abu Dhabi Financial institution spokesperson mentioned in reply to ET’s queries, “As a matter of coverage, we don’t touch upon particular person shopper relationships, transactions, or market hypothesis.”
IHC and different entities cited above didn’t reply to queries.
The discussions are at an early stage and there’s no assure it can result in a transaction, mentioned the folks cited.
“Discussions are choosing up momentum, however the contours are evolving,” mentioned one investor who’s analyzing the deal. “It’s an advanced one and so much is dependent upon the regulator too.”
Having began out as a microfinance lender in 2001, Bandhan turned a full-fledged personal sector financial institution in August 2015. It has one of many largest microfinance mortgage books in India–Rs 35,000 crore on June 30. The entire mortgage e book of the financial institution stands at Rs 1.56 lakh crore with whole deposits of Rs 1.65 lakh crore. Bandhan has a capital adequacy ratio of 18.2% with widespread tier 1 ratio of 17.5% on June 30. The financial institution has 1,988 branches and a complete buyer base of 31.8 million.
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The financial institution slashed its FY27 return on property (RoA) steerage whereas asserting its June quarter leads to July, triggering a 15% plunge within the inventory to Rs 177.50, its sharpest intraday decline because the Covid-19 market crash in March 2020. On Monday, it ended at Rs 157, up 13.32% yr to this point, for a market worth of Rs 25,351.40 crore.
The steerage was pushed primarily by exterior components akin to elevated expertise value and moderation in NIM outlook. Additionally, FY27 mortgage development steerage was reduce to the decrease finish of the 14-15% vary guided earlier because of a slowdown owing to rising asset high quality threat from increased power prices and provide chain disruptions in addition to unsure monsoons.
“Bandhan underscored that the expansion reduce was pre-emptive and that on the bottom, asset-quality developments stay benign, together with enhancing delinquency developments in each newer in addition to older vintages, with the credit score value steerage retained at 1.6-1.8%,” mentioned Anuj Singla and Harsh Wardhan Modi, analysts at JP Morgan. “Steerage reduce was the important thing focus.”
Gulf Hall
Bandhan Applied sciences lately opened an workplace in Abu Dhabi. It additionally signed a strategic partnership in September 2026 with KMK Group, a subsidiary of the Khalid Al Hamed Group, in Abu Dhabi.
Following the acquisition of RBL Financial institution by Emirates NBD, West Asian monetary establishments have been actively scouting funding alternatives in lending and monetary expertise providers companies. Emirates NBD accomplished its funding of $2.75 billion in RBL Financial institution in June after securing regulatory approvals, whereas IHC has dedicated $1 billion for a controlling stake in Sammaan Capital.
“The UAE believes in India and is considered one of our largest overseas direct funding sources of capital. They’ve already invested $25 billion and are the seventh-largest supply of FDI. They’ve additionally given intent to speculate one other $25 billion within the close to future,” commerce and trade ministry Piyush Goyal mentioned final month after co-chairing the 14th India-UAE Excessive-Stage Joint Job Drive on Investments with Abu Dhabi Funding Authority Managing Director Sheikh Hamed bin Zayed Al Nahyan.
Goyal mentioned the UAE goals to take its investments in India to $100 billion.
