From The Economic Times · Arijit Barman and Atmadip Ray · · 2m
IHC and First Abu Dhabi Eye Bandhan Bank Stake
Abu Dhabi firms target Bandhan Bank promoter for stake in India's financial services.
In brief
Abu Dhabi firms target Bandhan Bank promoter for stake in India's financial services. Abu Dhabi investment firms IHC and First Abu Dhabi Bank are exploring a stake in Bandhan Financial Services, the promoter of India's Bandhan Bank, which owns 30% of the lender. Originally reported by The Economic Times.
Abu Dhabi investment company targets Bandhan promoter
IHC, the investment company of Abu Dhabi's national security adviser and deputy ruler Sheikh Tahnoon bin Zayed al-Nahyan, is among those in early-stage discussions to buy into Bandhan Financial Services, the promoter of Bandhan Bank.
Bandhan promoter seeks strategic investors
Bandhan Financial Services, led by founder Chandra Shekhar Ghosh, has been working with advisers Jefferies to find strategic investors for 25-32% of the promoter.
GIC and IFC hold 30.3% stake
GIC of Singapore and the International Finance Corporation (IFC) jointly hold 30.3% of Bandhan Financial Services at the end of March, seeking a full or partial exit.
Stake value up to $600m
Their stake alone could be worth $500-600 million, with other investors including Small Industries Development Bank of India (Sidbi) at 8.1%.
Bandhan Bank's financials
Bandhan Bank has a loan book of Rs 35,000 crore and total deposits of Rs 1.65 lakh crore with 1,988 branches and 31.8 million customers.
Gulf investors eye Bandhan
First Abu Dhabi Bank, Qatar Investment Authority, and PE funds like Carlyle and EQT are among Gulf firms scouting for a stake in Bandhan Financial Services.
Bandhan Bank's stock drop
Bandhan Bank's stock plunged 15% to Rs 177.50 after cutting FY27 return on assets guidance, its sharpest intraday decline since the 2020 market crash.
UAE investment in India
The UAE is India's seventh-largest foreign direct investment source with $25 billion already invested and plans to increase to $100 billion.
No transaction guaranteed
Discussions are at an early stage with no guarantee of a transaction, as regulatory approval remains a key factor.
The headline
Abu Dhabi investment firms IHC and First Abu Dhabi Bank are exploring a stake in Bandhan Financial Services, the promoter of India's Bandhan Bank, which owns 30% of the lender.
