Bandhan Bank slipped over 8% today to hit an intraday low at Rs.223.55, which is not too far from its 10% LC of the day at Rs.218.75.
The stock price fell after the company announced that it has received a binding bid from an asset reconstruction company (ARC) worth Rs 801 crore on a security receipt consideration basis for the written-off portfolio with an outstanding of Rs 8,897 crore. This low bid dampened the mood on the counter.
The bank will now go for bidding as per the 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.
Bandhan bank wrote off microfinance loans (mostly group loan) worth around Rs 3,500 crore during the second quarter this fiscal.