Bandhan Bank appoints Goldman Sachs, JP Morgan as lead managers for IPO

As per RBI guidelines, banks have to list their businesses within three years of operation

Kolkata-based Bandhan Bank has appointed Goldman Sachs, JP Morgan Chase, Axis Bank Ltd, JM Financial and Kotak Mahindra Bank as merchant bankers to list its Initial Public Offering (IPO) on the bourses.

Kotak Mahindra Bank will act as the left lead in this issue. 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, the bank said.

As per the Reserve Bank of India (RBI) guidelines, banks have to list their business within three years of operation.

The bank had posted Rs 1,111.95 crore net profit for FY 18. The bank reported a 35 per cent rise in its net profit for the quarter ended June 30, 2017 aided by high net interest and non–interest incomes. Since its launch, the bank has collected deposits more than Rs 24,500 crore and outstanding loan book is Rs 21,235 crore.

Amidst falling deposit rates of Schedule Commercial Banks, Bandhan Bank has maintained that the savings bank account interest rate is 6 per cent for balance above Rs 1 lakh and 4 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 0.5 per cent for the senior citizens.

Currently, Bandhan Bank operates across 33 Indian states and Union Territories through a robust network of 844 branches, 2,485 Doorstep Service Centres (DSCs) and 384 ATMs, catering to more than 11 million customers.