Bandhan Financial looks to give long-term investors an exit

Bandhan Financial Services, the promoter of Bandhan Bank, is actively seeking exit strategies for its long-term investors, including GIC Ventures and the International Finance Corporation (IFC). Engaging global investment banker Jefferies, the company aims to assess potential interest from private equity funds as it navigates the regulatory requirement to reduce its promoter stake in Bandhan Bank to 26% by 2030. Currently holding just under 40%, Bandhan Financial's board has considered two main exit routes: selling shares to private equity investors or launching an initial public offering (IPO). The move comes as Bandhan Bank shows signs of recovery following a challenging period in its microfinance sector, with BFSL's projected net profit for the first nine months expected to be around ₹285 crore. A June deadline has been suggested for the private stake sale; if unmet, attention will shift entirely toward an IPO. IFC and GIC have been invested in Bandhan Financial since 2011 and 2015, respectively, supporting its transition from a microfinance entity to a full-fledged bank. Currently, BFSL focuses on investment management and holds full ownership of Bandhan Financial Holdings, established to comply with RBI's private banking regulations.