Shares of Bandhan Bank Ltd rose nearly 4% on Wednesday following the board's approval to sell written-off portfolio and non-performing assets (NPAs) worth ₹4,930 crore to Asset Reconstruction Company (ARC).
The board has approved the proposal for transfer of loans originated from banking units (BUs) and SEL written-off portfolio with outstanding of ₹2,614.03 crore and NPA loans originated from BUs, totalling to ₹2,316.32 crore to ARC.
For the written-off portfolio and the NPA portfolio, the bank has received binding bids totaling ₹369.20 crore and ₹370.62 crore, respectively, on the basis of security receipts (SR) consideration.
“The Bank shall go for bidding as per Swiss challenge method and decision of sale shall be taken as per extant guidelines governing Swiss challenge method and the relevant Policy of the Bank,” said the lender in an exchange filing.
From an ARC last December, the bank received binding bids of ₹801 crore for its written off portfolio. For the written-off portfolio with an outstanding of ₹8,897 crore, the bank accepted the offer on the premise of security receipts consideration.
In a separate development, the board has appointed Ratan Kumar Kesh as Executive Director (ED) of the bank. The RBI has also approved the appointment.
On the technical front, the stock recorded a new 52-week low in the past week.
Bandhan Bank's weekly average delivery volume is 35.36%, and the stock price fell 28.7% and underperformed its sector by 38.8% in the past year.
"The stock was oversold and has bounced in today's session, overall trend is down but a bounce-back is there due to broader markets trend, ₹220 is resistance; ₹200 is support," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
According to a MintGenie poll, 28 analysts on an average recommend a 'buy' rating on the stock.