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Bandhan jumps on stake sale talks

Bandhan Bank shares surged nearly 8% after reports suggested that Abu Dhabi-based investors are in talks to buy a stake in Bandhan Financial Services, the bank's promoter entity.

According to reports, International Holding Company and First Abu Dhabi Bank are evaluating a potential investment in Bandhan Financial Services. The promoter entity is exploring the sale of a 25-32% stake, which could provide an exit opportunity for existing investors such as GIC and IFC. The proposed stake sale is estimated at $500-600 million, and Jefferies is advising on the transaction. Discussions are still at an early stage, and no final agreement has been reached.

Bandhan Bank currently serves around 3.2 crore customers through nearly 6,400 banking outlets across the country. For Q1FY27, the bank reported a 35% YoY rise in net profit to Rs 502 crore, while net interest income increased 6% YoY to Rs 2,921 crore. Net interest margin stood at 6.2%. Share of Bandhan Bank rose 8.65% to Rs. 170 in early trade on Tuesday.