Bandhan Bank has appointed five lead managers, including Goldman Sachs Group and JPMorgan Chase, to manage its proposed initial public offer (IPO). “The board of Bandhan Bank has decided to appoint Goldman Sachs Group Inc., JPMorgan Chase & Co., Axis Bank , JM Financial and Kotak Mahindra Bank as lead managers to manage its proposed initial public offerings. Kotak Mahinda Bank will act as the left lead in the issue,” the bank said in a statement on Tuesday.
“The size of the share sale, its timing and all other related aspects have not been finalized as yet. The final decision on the proposed IPO will be subject to all regulatory approvals,” the statement added. The city-based private sector lender completed two years as a universal bank last year. As per the Reserve Bank of India’s guidelines, it has to go for an IPO in next year.
“We will have to do it within three years of starting the banking operations to comply with the RBI guidelines. I will not defer the launch of IPO, but timing of its launch will depend on the market conditions,” Chandra Shekhar Ghosh, managing director and chief executive officer, Bandhan Bank, had told reporters in August at an event to celebrated the bank’s second foundation day.
Bandhan Bank, which was the first instance in the country of a microfinance entity transforming into a universal bank, commenced its operations on August 23, 2015 with 501 branches across 24 states. Both GIC, Singapore’s sovereign wealth fund, and International Finance Corporation (IFC), a member of the World Bank Group, hold nearly 5% stake in the bank. Representatives from IFC and GIC have joined the bank’s board.
At present the bank operates across 33 states and Union Territories through a network of 844 branches and 384 ATMs, catering to more than 11 million customers. Since its launch, the bank has collected deposits of more than Rs. 24,500 crore and outstanding loan book stands Rs. 21,235 crore.
The Bank reported a net profit growth of over 35% year-on-year to Rs. 327 crore for the first quarter ended June 30 from Rs. 242 crore for the corresponding period a year ago. During the June quarter, its operating profit grew 44.68% y-o-y at Rs. 557 crore as against Rs. 385 crore in the year-ago period.