Archive · 28 Nov 2025
Bandhan Bank Sells NPAs, Written-Off Loans
Bandhan Bank has decided to sell some of its bad loans and written-off loans.
These loans are from small businesses, farmers, and other entrepreneurs.
The bank will sell these loans to special companies that fix bad loans.
The bank wants to do this to make its financial situation better.
The loans to be sold add up to a lot of money.
The bank will use a special way of selling called the Swiss Challenge method.
The bank's profit has gone down a lot, and it is taking steps to manage risks and improve future performance.
Bandhan Bank approved the sale of NPAs and written-off loan portfolios on November 27, 2025.
The portfolios include loans from the Emerging Entrepreneurs Business (EEB) and Aspiring Business Group (ABG) segments.
NPAs with over 180 days past due, totaling ₹3,212.17 crore, will be sold through a Swiss Challenge method.
The written-off loan portfolio, totaling ₹3,719.14 crore, will be auctioned separately.
The move aims to improve the bank's balance sheet and asset quality, with the bank's net profit falling 88.07% year-on-year in Q2FY26.
- Who
- Bandhan Bank
- What
- Sale of NPAs and written-off loan portfolios worth nearly ₹7,000 crore
- When
- Board meeting on November 27, 2025
- Where
- Not specified
- Why
- To improve the bank's balance sheet and asset quality, and manage elevated sectoral risks
Bank Management
Investors/Analysts
Asset Quality Improvement
Bank Management
The sale aims to clean up the balance sheet and improve asset quality.
Investors/Analysts
The move is seen as necessary but may indicate underlying financial stress.
Profit Decline
Bank Management
The bank is taking steps to manage elevated sectoral risks and improve future performance.
Investors/Analysts
The significant drop in net profit raises concerns about the bank's financial health.
- Bank
- Bandhan Bank
- Date of Board Meeting
- November 27, 2025
- NPA Principal Outstanding
- ₹3,212.17 crore (as of September 30, 2025)
- Written-Off Loan Principal Outstanding
- ₹3,719.14 crore (as of September 30, 2025)
- Loan Segments
- Emerging Entrepreneurs Business (EEB), Aspiring Business Group (ABG)
- Sale Method
- Swiss Challenge method for NPAs, auction for written-off loans
- Buyers
- Asset Reconstruction Companies (ARCs) and other permitted transferees
- Gross NPA Ratio (Q2FY26)
- 5.02%
- Net NPA Ratio (Q2FY26)
- 1.37%
- Net Profit (Q2FY26)
- ₹111.87 crore (down 88.07% YoY)
- Technical Write-offs (Q2FY26)
- ₹865 crore (₹799 crore from EEB portfolio)
- EEB Portfolio (Q2FY26)
- ₹51,733 crore (down 13% YoY)
- ROA (H1FY26)
- 0.5%
- ROE (H1FY26)
- 4%
Sources
Bandhan Bank board clears sale of NPAs and written-off loan portfolios
Bandhan Bank shares in focus as lender moves to sell stressed assets worth nearly ₹7,000 crore
Bandhan Bank to sell off NPAs, written-off portfolios worth nearly ₹7,000 crore
Bandhan Bank in focus as Rs 6,931 crore NPA, write off portfolio goes on auction
