Bandhan Bank transfers ₹6,872 crore stressed unsecured portfolios to ARCs

has completed the sale of identified unsecured non-performing and written-off loan portfolios to asset reconstruction companies (ARCs), following earlier board approval disclosed on November 27, 2025. The portfolios relate to the bank’s Emerging Entrepreneurs Business (EEB) and Aspiring Business Group (ABG) segments, covering group loans as well as small business and agri loans. In the first transaction, the bank sold an unsecured NPA pool that was over 180 days past due, with principal outstanding of ₹3,165.25 crore (as of November 30, 2025), for a consideration of ₹569.75 crore via security receipts (SRs) to ARCIL. ARCIL was selected under the Swiss Challenge method and subscribed to 53.25% of the SRs (₹303.39 crore), while Bandhan Bank retained 46.75% (₹266.36 crore). Separately, Bandhan Bank sold an unsecured written-off loan portfolio with principal outstanding of ₹3,707.11 crore (as of November 30, 2025) to Phoenix ARC for ₹331.97 crore on an SR basis. Phoenix subscribed to 37.84% of the SRs (₹125.60 crore) and Bandhan Bank subscribed to 62.16% (₹206.37 crore). Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.