Bandhan Bank promoter in talks with Abu Dhabi's IHC and Gulf lenders for stake sale

Abu Dhabi's International Holding Company is in early discussions to acquire a significant stake in Bandhan Financial Services, the promoter entity of private sector lender Bandhan Bank.

The transaction aims to acquire a 25% to 32% holding to provide an exit route for long-term institutional backers. Singapore sovereign wealth fund GIC and the World Bank Group's International Finance Corporation jointly held 30.3% of the promoter firm at the end of March. Their combined stake is estimated to be worth between $500 million and $600 million.

Bandhan Financial Services, led by founder Chandra Shekhar Ghosh, has engaged investment bank Jefferies to run the process. Other regional institutions, including First Abu Dhabi Bank and the Qatar Investment Authority, alongside global private equity firms, have also been approached.

Ownership structure and regulatory glidepath

Bandhan Financial Services operates as the umbrella promoter, controlling Bandhan Financial Holdings, which in turn held a 37.5% stake in Bandhan Bank at the end of June. Under licensing guidelines set by the Reserve Bank of India, the promoter group must bring its holding in the lender down to 26% by 2030.

Beyond the bank, the promoter entity holds 59.98% of Bandhan AMC and 97.16% of Bandhan Life Insurance, making the parent company a broader play on India's expanding financial services ecosystem.

Strengthening Gulf-India financial corridor

The interest from Gulf sovereign-backed vehicles highlights sustained foreign confidence in India's financial stability and domestic growth story. Bandhan Bank, which transformed from a microfinance institution into a commercial lender in 2015, maintains a deposit base of Rs 1.65 lakh crore and an overall loan book of Rs 1.56 lakh crore across 1,988 branches, serving 31.8 million customers.

Middle Eastern financial giants have stepped up direct bets on Indian lenders. Emirates NBD recently completed a $2.75 billion transaction in RBL Bank, while IHC committed $1 billion to acquire a controlling interest in Sammaan Capital. Bilateral economic ties between New Delhi and Abu Dhabi have accelerated steadily, backed by the comprehensive economic partnership and regular high-level investment discussions.

Commerce and Industry Minister Piyush Goyal recently noted that the United Arab Emirates remains India's seventh-largest source of foreign direct investment, having injected $25 billion so far with plans to deploy another $25 billion on the way to a $100 billion target.

What comes next

Discussions remain at a preliminary stage. Any eventual agreement will require clearances from the Reserve Bank of India, which exercises close oversight on bank shareholding structures and promoter fitness.

Bandhan Bank founder Chandra Shekhar Ghosh declined to comment on market speculation, while First Abu Dhabi Bank maintained its policy of not commenting on client transactions. IHC and other prospective bidders have not issued public statements.