Business · Companies · 1 hr ago
IHC and First Abu Dhabi Bank explore investment in Bandhan Bank promoter
Abu Dhabi investment company IHC and First Abu Dhabi Bank are among several potential investors discussing a stake in Bandhan Financial Services, based in India.
The company is Bandhan Bank’s promoter and held 37.5% of the bank at the end of June.
The discussions could give long-term investors, including Singapore’s GIC and the International Finance Corporation, a chance to sell some or all of their holdings in the promoter.
Those two investors jointly held 30.3% of Bandhan Financial Services at the end of March.
Bandhan began as a microfinance lender in 2001 and became a full-fledged bank in 2015.
The bank must reduce its promoter’s stake to 26% by 2030 under its licensing agreement with India’s central bank.
The talks are still at an early stage, and any deal would depend in part on regulatory approval.
IHC and First Abu Dhabi Bank are among those in early-stage discussions about investing in Bandhan Financial Services, the promoter of Bandhan Bank.
Bandhan Financial Services is working with advisers Jefferies to find strategic investors for 25% to 32% of the company.
The discussions could give early investors GIC and the International Finance Corporation an opportunity to sell some or all of their combined 30.3% stake.
The potential transaction is not guaranteed, and its terms are still being discussed.
Bandhan Financial Holdings, a subsidiary, held 37.5% of Bandhan Bank at the end of June and must reduce that stake to 26% by 2030 under its licensing agreement with the Reserve Bank of India.
- Who
- IHC and First Abu Dhabi Bank are among those in discussions about investing in Bandhan Financial Services. GIC and the International Finance Corporation are potential sellers.
- What
- The parties are exploring an investment in Bandhan Bank’s promoter, which is seeking strategic investors for 25% to 32% of the company.
- When
- Discussions are at an early stage. The publication reported the story on October 13, 2026.
- Where
- Bandhan Financial Services is based in India; the article dateline is Mumbai and Kolkata.
- Why
- The move could give early investors an opportunity to exit their stakes.
This story does not have two clearly opposing sides.
Bandhan started out as a microfinance lender.
Bandhan became a full-fledged private sector bank.
The Economic Times first reported that Bandhan Financial Services was looking to give long-term investors an exit.
GIC and the International Finance Corporation together held 30.3% of Bandhan Financial Services.
Bandhan Financial Holdings held 37.5% of Bandhan Bank.
- Strategic investor search
- 25% to 32% of Bandhan Financial Services
- GIC and IFC combined stake
- 30.3% at the end of March
- Potential value of GIC and IFC stake
- $500 million to $600 million
- Bandhan Financial Holdings’ bank stake
- 37.5% at the end of June
- Required stake reduction
- To 26% by 2030
What people are saying
We don’t comment on market speculation
As a matter of policy, we do not comment on individual client relationships, transactions, or market speculation.
Discussions are picking up momentum, but the contours are evolving
It’s a complicated one and a lot depends on the regulator too.
Sources
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