Bandhan Bank files IPO papers with Sebi

Bandhan Bank Ltd, the first Indian microfinance lender to get a banking permit, has filed for an initial public offer with the Securities and Exchange Board of India (Sebi) as per the central bank's norms that require new lenders to go public within three years of starting operations.

The new age lender, which is backed by Singapore sovereign fund GIC, will be selling 119.2 million shares in its IPO, according to a statement issued by the bank.

Kolkata-based Bandhan Bank will issue around 97.6 million fresh shares besides an offer for sale by World Bank arm International Finance Corporation (IFC) totalling over 119 million shares.

Bandhan Bank, which received a universal bank licence from RBI in 2014, started operations in August 2015.

The bank had a net interest margin of 10.01 per cent in the quarter-ended 30 September, the highest among banks in the country, while its bad-loan ratio was 1.43 per cent, according to company filings.

The book running lead managers to the issue are Kotak Mahindra Capital Co Ltd, Axis Capital Ltd., Goldman Sachs (India) Securities Pvt Ltd, JM Financial Institutional Securities Ltd and JP Morgan India Pvt Ltd.