Synopsis: The shares of this banking company were in focus today after the management’s announcement stating the sale of non-performing assets worth almost Rs 6,900 crore hit the market.
The company, which is a commercial bank focused on serving underbanked and underpenetrated markets in India, had its shares in the news today as it announced its plan to sell off the two types of NPAs, which aggregate to a total value of Rs 6,900 crore, through different selling routes.
With the market cap of Rs 24,212 Crore, the shares of Bandhan Bank Ltd reached a high of Rs 152.35 compared to its previous day’s close of Rs 149.65, which is a gain of about 1.8 percent in today’s intraday session. The shares are trading at a PE of 19.6, whereas its industry PE is 15.4.
About the Sale of NPAs
Bandhan Bank Ltd has taken a major step toward cleaning up its balance sheet by deciding to sell a large chunk of stressed loans from its Emerging Entrepreneurs Business (EEB) and Aspiring Business Group (ABG) segments, in areas that include group loans, small business lending, and agri loans. The bank plans to put Rs 3,212.17 crore worth of NPAs, overdue for more than 180 days, through the Swiss Challenge method, which encourages competitive bidding and helps maximize recovery value.
In addition, another Rs 3,719.14 crore worth of written-off loans will be sold through a traditional auction process, where interested buyers bid openly and the highest bidder secures the portfolio. Together, this amounts to a significant Rs 6,931 crore cleanup effort, which is one of the larger restructuring moves by the bank.
By offloading these legacy stressed assets, Bandhan Bank aims to strengthen its asset quality, unlock capital stuck in non-performing accounts, and shift focus back to healthier lending opportunities. The move not only eases operational pressure on recoveries but also positions the bank for steadier, more sustainable growth in the coming quarters.
Financials and others.
The revenue from operations for the company stands at Rs 5,354 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 5,500 crores, which is a fall of about 3 percent YoY. Similarly, the net profit stood at Rs 937 crore in Q2 FY25 versus Rs 112 crore profit in Q2 FY26, which is a fall of about 88%.
Bandhan Bank’s Emerging Entrepreneurs Business (EEB) has seen a visible contraction over the last year. Total EEB assets fell from Rs 59,290 crore in Sep’24 to Rs 51,730 crore in Sep’25, a 12.7% drop. Within this, EEB Group loans declined from Rs 38,130 crore to Rs 33,110 crore a 13.2% fall, while Small Business & Agri Loans (SBAL) reduced from Rs 21,160 crore to Rs 18,620 crore, which is a fall of 12%. The number of active borrowers also slipped from 1.38 crore to 1.28 crore, showing a 7.2% YoY decline, reflecting tighter lending and stress in micro- and small-business portfolios.
Bandhan Bank, incorporated in 2014, started its journey much earlier, as an NGO, then an NBFC, and eventually a full-fledged universal bank. The company’s core purpose has remained the same: that is, reaching people who are often overlooked by traditional banking. From the unbanked to the underbanked, the bank has focused on taking financial services to the very last mile and supporting customers of every size, big or small. Bandhan Bank has grown from promoting financial inclusion to building a more inclusive and accessible banking ecosystem for millions.
Written by Leon Mendonca.
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