Abu Dhabi's IHC, First Abu Dhabi Bank in Talks for Stake in Bandhan Bank Promoter
Abu Dhabi’s International Holding Company (IHC) and First Abu Dhabi Bank are in early talks to buy a stake in Bandhan Financial Services (BFSL), the promoter entity of Bandhan Bank. According to The Economic Times, BFSL, which holds about 37.5% of the bank, is looking to sell a 25-32% stake. The sale would provide an exit for early investors like Singapore's GIC and the International Finance Corporation (IFC), who together own over 30% of the promoter firm. The deal could be worth up to $600 million and would also help the bank's founder, Chandra Shekhar Ghosh, meet an RBI mandate to reduce the promoter stake to 26% by 2030.
What this means
This is a significant potential transaction for Bandhan Bank. Bringing in a major sovereign-backed entity like IHC or a large regional bank like FAB could provide a strong, stable long-term anchor investor. This would be a vote of confidence in Bandhan's microfinance-led model, which started as a small lender for low-income individuals and grew into a full-fledged bank. For the bank, a successful deal achieves two goals at once: it satisfies the RBI's ownership dilution requirement well ahead of the 2030 deadline and brings a deep-pocketed strategic partner to the table. The outcome of these talks will be closely watched as an indicator of foreign investor appetite for the Indian financial services sector.
Most affected: Private sector banks and M&A teams
Key takeaway: The potential entry of a Gulf-based sovereign investor into Bandhan's promoter entity could reshape the bank's strategic direction and ownership structure.
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