Bandhan appoints five merchant bankers for IPO

Kolkata-based Bandhan Bank on Tuesday said it had appointed Goldman Sachs, JPMorgan Chase, Axis Bank, JM Financial and Kotak Mahindra Bank as merchant bankers for its initial public offering (IPO).

The size of the share sale, its timing and other related aspects has not been finalised as yet, Bandhan Bank said in a statement. The bank had initiated its listing process last month. However, the final decision on the proposed IPO will be subject to all regulatory approvals, it said.

According to the Reserve Bank of India’s (RBI’s) guidelines, banks have to list their business within three years of operation. Bandhan Bank had posted Rs 1,111.95 crore in net profit for the FY18. It reported a 35 per cent rise in its net profit for the quarter ended June 30, aided by high net interest and non–interest incomes. 

Since its launch, the bank has collected deposits of over Rs 24,500 crore, and its outstanding loan book is Rs 21,235 crore. Amid falling deposit rates of scheduled commercial banks, Bandhan Bank has maintained its interest rate on savings bank account at six per cent for balance above Rs 1 lakh, and four per cent for balance up to Rs 1 lakh. 

For term deposits, the maximum interest rate offered is 7.25 per cent for one year, with an additional 0.5per cent for the senior citizens.

Currently, it operates across 33 Indian states and Union Territories through a robust network of 844 branches, 2,485 doorstep service centres and 384 ATMs, catering to more than 11 million customers.