Listen to this article in summarized format
"The Bank categorically denies the reported speculation regarding any acquisition related discussions or proposal involving Bandhan Bank and First Abu Dhabi Bank."
Bandhan Bank shares were up 2.32%, trading at ₹154.50 a piece as of 1:26 pm.
Having started out as a microfinance lender in 2001, Bandhan became a full-fledged private sector bank in August 2015. It has one of the largest microfinance loan books in India--Rs 35,000 crore on June 30. The total loan book of the bank stands at Rs 1.56 lakh crore with total deposits of Rs 1.65 lakh crore. Bandhan has a capital adequacy ratio of 18.2% with common tier 1 ratio of 17.5% on June 30. The bank has 1,988 branches and a total customer base of 31.8 million.
ALSO READ | Bandhan Bank promoter to gradually reduce stake to meet RBI norms
The bank slashed its FY27 return on assets (RoA) guidance while announcing its June quarter results in July, triggering a 15% plunge in the stock to Rs 177.50, its sharpest intraday decline since the Covid-19 market crash in March 2020. On Monday, it ended at Rs 157, up 13.32% year to date, for a market value of Rs 25,351.40 crore.
The guidance was driven primarily by external factors such as elevated technology cost and moderation in NIM outlook. Also, FY27 loan growth guidance was cut to the lower end of the 14-15% range guided earlier due to a slowdown owing to rising asset quality risk from higher energy costs and supply chain disruptions as well as uncertain monsoons.
“Bandhan underscored that the growth cut was pre-emptive and that on the ground, asset-quality trends remain benign, including improving delinquency trends in both newer as well as older vintages, with the credit cost guidance retained at 1.6-1.8%,” said Anuj Singla and Harsh Wardhan Modi, analysts at JP Morgan. “Guidance cut was the key focus.”
Bandhan Technologies recently opened an office in Abu Dhabi. It also signed a strategic partnership in September 2026 with KMK Group, a subsidiary of the Khalid Al Hamed Group, in Abu Dhabi.
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.