Bandhan Bank Offloads ₹6,872 Cr Bad Loans to ARCs in Major Sale

• Bandhan Bank sold ₹6,872 crore worth of identified unsecured non-performing assets (NPA) and written-off loan portfolios to Asset Reconstruction Companies (ARCs).
• The sale, approved by its board, includes loans from Emerging Entrepreneurs Business (EEB) and Aspiring Business Group (ABG).
• An unsecured NPA portfolio of ₹3,165.25 crore was sold to Asset Reconstruction Companies (India) Ltd (ARCIL) for ₹569.75 crore.
• A separate unsecured written-off loan portfolio of ₹3,707.11 crore was sold to Phoenix ARC Private Ltd for ₹331.97 crore.
• Both transactions involved Bandhan Bank subscribing to a portion of the Security Receipts (SRs).

Why It Matters: Bandhan Bank offloaded ₹6,872 crore in bad loans to ARCs, strengthening its financial position.