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Bandhan Bank Approves Rs 6,931 Crore Bad-Loan Sale Through Swiss Challenge and Auction

The sale focuses on stressed micro and small-business exposures after persistent slippages in those books.

Overview

  • The bank will run a Swiss Challenge for NPAs over 180 days past due totaling Rs 3,212.17 crore as of Sept. 30, 2025, inviting bids from asset reconstruction companies.
  • A separate auction will offer written-off loans with principal outstanding of Rs 3,719.14 crore as of the same date.
  • The assets identified for disposal come from the Emerging Entrepreneurs Business and the Aspiring Business Group, spanning group, small business and agriculture loans.
  • As of September, gross NPAs were Rs 7,015 crore with gross and net NPA ratios at 5% and 1.4%, while provision coverage including technical write-offs was about 87.6%.
  • Investors marked the stock down about 1% after disclosures that Q2 EEB slippages were Rs 1,118 crore and technical write-offs in that book were Rs 799 crore.