Bandhan Bank has firmly rejected market speculation linking it to a possible acquisition by First Abu Dhabi Bank (FAB), the UAE’s largest lender, which is reported to be scouting for a mid-sized private bank in India. In a regulatory filing with the stock exchanges on 27 October, the Kolkata-headquartered lender said it was “not involved in any such discussion” and described its mention in a media report as “factually incorrect”.
What the report said
The clarification follows a Moneycontrol report published on 27 October, titled “First Abu Dhabi Bank scouts for acquisition in India”. Citing investment bankers and people aware of FAB’s strategy, the report said the Abu Dhabi lender is keen to buy a 51% majority stake in a mid-sized Indian private bank, and that its senior management had held meetings with Bandhan Bank and a Kerala-based lender. Bankers quoted in the report cautioned that nothing conclusive had emerged and that any transaction could still be some time away, possibly closing by the end of this fiscal or early FY28.
According to the report, FAB is looking at banks that trade below book value, offer meaningful scale and geographic reach, and have a clean holding structure that would give an acquirer operational freedom. FAB did not respond to Moneycontrol‘s request for comment.
Bandhan Bank: “categorically denies” speculation
In its disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, Bandhan Bank said it “categorically denies the reported speculation regarding any acquisition related discussions or proposal involving Bandhan Bank and First Abu Dhabi Bank”. The bank added that it gives utmost importance to regulatory compliance and continues to meet its disclosure obligations.
The denial did little to cool investor interest. Bandhan Bank shares were trading 2.32% higher at ₹154.50 at around 1:26 pm on Tuesday, The Economic Times reported. Earlier this month, the exchange had also sought a clarification from the bank on a separate report that Abu Dhabi’s IHC was exploring a promoter stake acquisition.
Why Gulf lenders are looking at India
FAB already operates two branches in India, in Mumbai and at GIFT City, and has reportedly mobilised about $1.5 billion through FCNR(B) deposits. Its interest in a larger Indian footprint comes roughly a year after rival Emirates NBD’s deal for RBL Bank, a transaction that bankers say has highlighted the value of cross-border expansion into a high-growth market sitting on the East–West trade corridor. India accounts for around 5% of Emirates NBD’s deposits and 6% of its consolidated loan book, the report noted.
Mid-sized private banks and several old private sector lenders are currently trading at or slightly below book value, which bankers say makes the segment attractive for well-capitalised foreign strategic investors seeking a banking licence in India at a reasonable price.
What it means for Indian banking
Any controlling stake by a foreign bank in an Indian private lender would require approval from the Reserve Bank of India and would be closely watched as a test of the regulator’s openness to large foreign ownership. For now, with Bandhan Bank on record denying any talks, FAB’s India ambitions remain at the exploration stage, but the episode underlines growing Gulf interest in India’s mid-tier banking space.
Sources: Bandhan Bank exchange filing (27 October 2026); Moneycontrol; The Economic Times.
