Bandhan Bank Rejects Reports of Acquisition Deal With First Abu Dhabi Bank
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Summarized by AI; it may make mistakes. Check important info
India's Bandhan Bank on Tuesday denied reports of acquisition-related discussions with First Abu Dhabi Bank, calling the speculation factually incorrect and stating that no such talks or proposal involving the lender were under way.
“The Bank categorically denies the reported speculation regarding any acquisition-related discussions or proposal involving Bandhan Bank and First Abu Dhabi Bank,” the bank said in a statement.
Bandhan Bank shares rose 2.32% to ₹154.50 apiece during trading on Tuesday, as of 1.26 pm, as per Economic Times.
Bandhan Bank’s Business and Financial Position
Bandhan began operations as a microfinance lender in 2001 before becoming a full-fledged private sector bank in August 2015. It has since built one of India’s largest microfinance loan portfolios.
As of June 30, the bank’s microfinance loan book stood at ₹35,000 crore. Its total loan book was ₹1.56 lakh crore, while deposits stood at ₹1.65 lakh crore.
The bank reported a capital adequacy ratio of 18.2% and a Common Equity Tier 1 ratio of 17.5% as of June 30. It operates 1,988 branches and serves 31.8 million customers.
Growth Outlook Under Pressure
Bandhan Bank lowered its return on assets guidance for the 2026-27 financial year while announcing its June-quarter results in July. The announcement triggered a 15% fall in its share price to ₹177.50, marking its sharpest intraday decline since the March 2020 market crash, as per the Economic times.
The bank attributed the revised outlook primarily to higher technology costs and a moderation in its net interest margin outlook. It also lowered its loan growth guidance to the lower end of its earlier 14-15% range, citing rising asset-quality risks linked to higher energy costs, supply chain disruptions and uncertain monsoon conditions.
JP Morgan analysts Anuj Singla and Harsh Wardhan Modi said the bank had described the growth revision as a pre-emptive move, adding that asset-quality trends remained stable and delinquencies were improving across newer and older loan vintages.
The bank retained its credit cost guidance at 1.6-1.8%.
Abu Dhabi Business Connections
Bandhan Technologies recently opened an office in Abu Dhabi. In September 2026, it also signed a strategic partnership with KMK Group, a subsidiary of the Khalid Al Hamed Group, in the UAE capital.
These business links come amid speculation about a possible acquisition involving First Abu Dhabi Bank. Bandhan Bank, however, has categorically denied any acquisition-related discussions or proposal involving the two institutions.
