Industry Odisha Bureau, Oct 13: IHC and other Gulf investors are reportedly exploring a stake in Bandhan Financial Services. A deal could let GIC and IFC sell holdings worth an estimated $500–600 million. Talks remain at an early stage.
After more than a decade, two of Bandhan’s long-standing backers are seeking an exit. Their search could reshape ownership at the top of Bandhan Bank’s group. Investors from Abu Dhabi are among those now taking a closer look.
Gulf money at the table
IHC is reportedly in early talks to buy into Bandhan Financial Services (BFSL). BFSL is the promoter of Bandhan Bank. IHC is linked to Sheikh Tahnoon bin Zayed Al Nahyan, Abu Dhabi’s national security adviser. First Abu Dhabi Bank and Qatar Investment Authority have also been approached, sources said. Buyout funds such as Carlyle and EQT have been sounded out too. BFSL, led by founder Chandra Shekhar Ghosh, is working with Jefferies to find strategic investors. It is seeking partners for 25–32% of BFSL, not the bank itself.
A long-awaited exit
Singapore’s GIC and the International Finance Corporation (IFC) jointly held 30.3% of BFSL in March. Both have backed the firm for over a decade. They want a full or partial exit, sources said. Their combined stake could be worth $500–600 million. That is an estimate, not an agreed price. If other shareholders also sell, the deal could grow larger.
Who owns what
Two financial inclusion trusts together own 40.7% of BFSL. The Bandhan Employees’ Welfare Trust holds 14.6%, and SIDBI owns 8.1%. BFSL owns Bandhan Financial Holdings, which held 37.5% of Bandhan Bank in June. Public shareholders held the remaining 62.5%. The holding company also oversees Bandhan AMC and Bandhan Life Insurance. BFSL owned 59.98% of the AMC and 97.16% of the insurer in March.
The RBI factor
Bank ownership rules sit at the heart of any deal. Bandhan’s RBI licence requires that stake to fall to 26% by 2030. Selling BFSL shares would not by itself meet that requirement. The two sit at different layers of the ownership chain. A new BFSL investor would gain indirect exposure to the bank. It is complicated and a lot depends on the regulator, said one investor studying it.
Pressure on the bank
Bandhan began as a microfinance lender in 2001 and became a bank in 2015. In June, its loans stood at ₹1.56 lakh crore and deposits at ₹1.65 lakh crore. Microfinance made up ₹35,000 crore, and capital adequacy was 18.2%. In July, the bank cut its FY27 return-on-assets guidance. Its shares fell 15% intraday, the sharpest drop since March 2020. Loan growth is now guided to the lower end of 14–15%.
A wider Gulf push
Gulf lenders and funds have been scouting Indian financial firms. Emirates NBD completed a $2.75 billion investment in RBL Bank in June. Separately, IHC has committed $1 billion for control of Sammaan Capital. Commerce minister Piyush Goyal said the UAE has already invested $25 billion in India.
Early days
Ghosh, now Bandhan Bank chairman, declined to comment on market speculation. First Abu Dhabi Bank also declined to comment, while IHC did not respond. The talks may not produce a deal. If they do, the RBI’s view could shape its final form.
