Bank to auction NPAs and written-off loans through a competitive bidding process involving ARC firms
Bandhan Bank has announced plans to divest stressed assets totaling nearly ₹7,000 crore as part of its ongoing efforts to clean up its balance sheet and improve asset quality. The decision was approved during a board meeting held on Thursday.
Breakdown of Assets Planned for Sale
As of September 30, 2025:
| Category | Outstanding Principal |
| Non-Performing Assets (NPAs) | ₹3,212.17 crore |
| Written-off Loans | ₹3,719.14 crore |
| Total Portfolio for Sale | ₹6,931+ crore |
The assets comprise non-performing loan accounts already overdue for more than 180 days, along with fully written-off accounts.
Sale Method and Process
Bandhan Bank will conduct the sale through a Swiss Challenge auction model, inviting bids from asset reconstruction companies (ARCs) and other eligible buyers. Bidders will be able to propose offers for both active NPAs and written-off portfolios.
Loan Segments Included
The stressed asset pools include two major lending segments:
- Emerging Entrepreneurs Business (EEB): group loans, microbusiness, and agriculture-related credit
- Aspiring Business Group (ABG): loans extended to emerging enterprise borrowers
The proposed sale indicates the bank’s push to strengthen its financial position by reducing legacy stress and improving recovery metrics.
Summary:
Bandhan Bank will sell stressed loans worth nearly ₹7,000 crore, including NPAs and written-off accounts, through a Swiss Challenge bidding process. The assets span the EEB and ABG loan segments and form part of the bank’s strategy to streamline its balance sheet and improve asset quality.
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