Bandhan said to select banks for RM3.5b IPO

MUMBAIBandhan Bank Ltd, the first Indian microfinance lender to get a banking permit, has picked arrangers for an initial public offering (IPO) that could raise at least 50 billion rupees (RM3.5 billion), people with knowledge of the matter said.

The lender, which is backed by Singapore sovereign fund GIC Pte Ltd, chose Goldman Sachs Group Inc and JPMorgan Chase & Co to advise on the share sale, according to the people.

Axis Bank Ltd, JM Financial Ltd and Kotak Mahindra Bank Ltd are also working on the offering, the people said, asking not to be identified because the information is private.

Bandhan Bank had a net interest margin of 10.75% in the quarter ended June 30, the highest among banks in the South Asian nation, while its badloan ratio was 0.82%, according to company filings.

It was started as a microfinance company in 2001 and converted to a bank in 2015 as India approved new licences in an effort to tap rural savings and bolster access to credit.

The Kolkata-based lender aims to sell shares in 2018, according to the people with knowledge of the matter. Investors will be offered about a 10% stake in Bandhan Bank through the IPO, the people said. — Bloomberg