Bandhan Bank on Thursday announced that the financial institution's board of directors and management have approved the sale of non-performing assets and written-off portfolios worth Rs 6,931 crore. The sale will be conducted as per the Swiss Challenge auction method and auction.
According to an exchange filing report, the portfolios contain non-performing assets worth ₹3,212.17 crores and written-off loans worth ₹3,719.14 crores as of 30 September 2025. The portfolios belong to the bank's Emerging Entrepreneurs Business (‘EEB’), comprising mostly Aspiring Business Group (‘ABG’), group loans and small business and agricultural loans.
The bank has decided to sell its portfolio of NPAs with more than 180 days past due, for which the bank will be going for the Swiss Challenge method and for the sale of the written-off portfolios, the bank will be going for the auction route. The sale will be made to asset reconstruction companies (ARC).
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What is an asset reconstruction company?
Asset reconstruction companies are financial institutions specialised in debt collection. These companies buy defaulted loan portfolios from banks and other lending institutions. Asset reconstruction companies are registered under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 and regulated by the RBI.
The notification was published after the approval of the board. The bank has planned to clean its EEB portfolio by selling its bad loans.
According to a NDTV Profit report, the EEB Group currently accounts for 23.6% of the bank’s total loan book. In the third quarter, Bandhan Bank carried out technical write-offs of ₹865 crore. Among which ₹799 crore was specifically from the EEB portfolio.
Thursday, the Bandhan Bank stocks saw a rise of 0.43% reaching ₹150.30 per share at the Bombay Stock Exchange(BSE), while at the National Stock Exchange(NSE), the stock price rose by 0.48% reaching ₹150.35 per share. The stock has experienced a 12.33% drop in its YoY performance at the NSE.
