Bandhan Bank approves sale of ₹304 crore NPA portfolio to ARC via Swiss Challenge Method

Bandhan Bank Q4 Results: Profit surges 68%; NPAs ease, dividend declared


Private lender Bandhan Bank Ltd on Monday (June 15) said its board of directors has approved the sale of identified non-performing assets (NPAs) from its housing finance portfolio to asset reconstruction companies (ARCs).

The NPAs proposed for sale are those with more than 180 days past due (DPD), with a total principal outstanding of ₹303.74 crore as of May 31, 2026.

The bank said the sale will be conducted through a bidding process with ARCs using the Swiss Challenge method. The bank did not provide additional details on the timing or completion schedule of the transaction.

ALSO READ | Bandhan Bank sees microfinance recovery, targets higher secured loan mix by FY27Fourth Quarter Results

Net profit for Q4FY26 rose 68% year-on-year to ₹534 crore from ₹318 crore. However, net interest income (NII) growth remained modest, rising 1.4% to ₹2,795.4 crore compared with ₹2,756 crore a year ago.

Asset quality showed further improvement during the quarter, with gross non-performing assets (NPA) easing to 3.27% from 3.33% in the December quarter. Net NPA also declined marginally to 0.97% from 0.99% sequentially.

On the business front, loans and advances (including on-book and PTC) stood at ₹1.54 lakh crore at the end of March, reflecting a 12.6% year-on-year increase and a 6.2% sequential rise. Total deposits grew 10% year-on-year to ₹1.66 lakh crore, with a 6.1% increase on a quarter-on-quarter basis.

ALSO READ | Bandhan Bank targets 15% loan growth, margins to hold steady

Retail deposits continued to gain traction, rising 17.7% year-on-year to ₹1.22 lakh crore, taking their share in total deposits to 73.67%, up from 68.88% a year ago.

Retail term deposits saw particularly strong growth, increasing 30.1% to ₹73,796 crore. In contrast, bulk deposits declined 6.9% year-on-year to ₹43,797 crore, indicating a shift towards a more granular deposit base.

CASA deposits rose modestly by 2.8% year-on-year to ₹48,751 crore, with the CASA ratio at 29.31%. The bank’s liquidity position remained comfortable, with a liquidity coverage ratio of 131.76% as of March 31, 2026. Collection efficiency also improved to 98.9%, compared with 98.1% in the previous quarter.

ALSO READ | Bandhan Bank sees microfinance recovery, targets higher secured loan mix by FY27

Shares of Bandhan Bank Ltd ended at ₹210.90, up by ₹6.40, or 3.13%, on the BSE.



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