Bandhan Bank to sell unsecured NPAs worth nearly ₹7,000 crore

Kolkata-headquartered private sector lender Bandhan Bank on Thursday informed the exchanges that it will sell unsecured retail bad loans, including written-off accounts, worth ₹6,931.31 crore to asset reconstruction companies (ARCs) and other permitted entities, marking one of the largest retail loan sale exercises by a private sector bank. Most of these bad assets are from the bank's micro loan portfolio.

- SUBRATA PANDA

“The bank will go forbidding as per the Swiss Challenge method for the sale of its nonperforming assets (NPA) portfolio, with more than 180 days past due, having a principal outstanding of ₹3,212.17 crore as on September 30, 2025. Further, the bank will opt for an auction route for the sale of its written-off loan portfolio, with a principal outstanding of ₹3,719.14 crore as on September 30, 2025,” the lender said in its exchange filing.

These loans belong to the Emerging Entrepreneurs’ Business (EEB) segment — which largely comprises microfinance loans, including group loans, small business loans, and agri loans — and the Aspiring Business Group (ABG) portfolio.