Shares of Bandhan Bank rose more than 7% on Tuesday, October 13, 2026, after reports that Abu Dhabi-based International Holding Company (IHC) and First Abu Dhabi Bank are looking at an investment in the bank’s promoter entity, Bandhan Financial Services Limited (BFSL). The development sparked buying interest in the stock in early trading.

Shares of Bandhan Bank Jump Over 7%

Bandhan Bank shares jumped to ₹169.26 in Tuesday morning trade, up 7.47 per cent from the previous close of ₹157.50. The stock had gained around ₹167.90 in early trade as investors reacted to reports about a possible change in the ownership structure of the promoter entity.

The sharp jump came amid a broader recovery in Indian equities but the bank’s move was largely due to company-specific developments.

The investment is still at an exploratory stage and no final agreement has been announced. The stock's movement does not reflect a change in ownership, but rather market expectations about a potential transaction.

Bandhan Bank Stake-Sale Reports

Abu Dhabi Investors See 25-32% in Promoter Entity

Abu Dhabi's International Holding Company and First Abu Dhabi Bank are among potential investors considering a strategic stake in Bandhan Financial Services Limited, media reports have said.

BFSL is the promoter of Bandhan Bank and has a stake of a little more than one-third in the private sector lender.

The proposed deal could see 25-32% stake in BFSL sold, allowing existing institutional investors to pare down or exit their investments.

Singapore’s GIC and the International Finance Corporation (IFC), which together hold some 30% of BFSL, are said to be looking to exit their long-term investments.

The potential deal has been discussed at valuations up to $600 mn, although the final deal size, ownership structure and financial terms are not clear.

It is important to point out that the proposed investment is in BFSL and not a direct acquisition of the listed shares of Bandhan Bank. Any change of ownership at the promoter-company level would not automatically change the bank’s total outstanding equity shares.

The transaction is also subject to applicable regulatory requirements and approvals, depending on its final structure.

Q2FY27 Business Update - Growth in Loans and Deposits

Apart from the proposed stake transaction, Bandhan Bank’s lending and deposit businesses have grown of late.

Its provisional Q2FY27 business update showed that loans and advances were up 13.1% YoY to ₹1,58,335 crore as on September 30, 2026. Deposits grew by 9.2% YoY to ₹1,72,689 crore.

Advances climbed 1.8% sequentially, while deposits were up 4.7%. Retail term deposits rose 16.8% YoY at ₹79,340 crore.

However, the CASA ratio dipped to 26.71% from 29.40% in the previous quarter, suggesting a lower share of low-cost current and savings account deposits.

What Does the Possible Stake Sale Mean for Bandhan Bank?

The news of Abu Dhabi’s interest comes as a wave of foreign investment activity rises in India’s financial services sector. IHC has previously sought to invest in Indian financial companies including Sammaan Capital.

The proposed transaction may lead to changes in the ownership structure of the promoter entity of Bandhan Bank. But talks are in their early stages and there is no guaranty they will end in a completed deal.

Earlier, the bank had clarified that as of March 2026, it was not aware of any promoter stake-sale talks. That was before the latest reports cleared up.

The next developments to watch for are any formal transaction announcement, proposed ownership changes and regulatory approvals.

Meanwhile, the bank’s loan growth, deposit mobilisation, funding costs and asset quality will remain key factors impacting its operating performance.

“BFSL vs Bandhan Bank” explainer