GIC-backed Bandhan Bank eyes IPO
Photo Credit: Shah Junaid/VCCircle

Kolkata-based Bandhan Bank Ltd, which is among the two entities that received banking licences in 2015, is planning to go for an initial public offering, according to a media report.

The bank has initiated the process to hire investment banks for its proposed IPO, Mint reported.

The public offering is expected to be a mix of primary and secondary share sales, the report said.

Bandhan Bank started banking operations in August 2015. Bandhan Financial Services Ltd and IDFC Ltd had received in-principle approval from the Reserve Bank of India in April 2014 for setting up banks.

As of 31 March 2017, the bank’s deposits stood at Rs 23,228.66 crore. In financial year 2016-17, it made a net profit of Rs 1,111.95 crore. The bank has a network of 840 branches and 2,444 doorstep service centres in 33 states and union territories.

Bandhan Bank is backed by Singapore’s sovereign wealth fund GIC and World Bank’s private sector investment arm International Finance Corporation.

In 2015, it had raised equity worth $260 million from GIC, IFC, and state-run Small Industries Development Bank of India to expand its net worth to Rs 2,700 crore, well above the RBI stipulation of a minimum capital base of Rs 500 crore for new banks. As on 31 March 2016, both funds held 5% stake each in the bank.

In July 2015, the bank had named Ashok Lahiri as chairman of its ten-member board.

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