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Abu Dhabi’s IHC and First Abu Dhabi Bank Eye 25%–32% Stake in Bandhan Bank Promoter BFSL via Jefferies

Abu Dhabi-based International Holding Company (IHC)—the flagship investment conglomerate chaired by Abu Dhabi Deputy Ruler and National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan—and First Abu Dhabi Bank (FAB) are in early-stage talks to acquire a 25% to 32% stake in Bandhan Financial Services Limited (BFSL), the unlisted promoter entity of Bandhan Bank.

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A $500M–$600M Exit Window for GIC and the IFC

The primary objective of the transaction is to provide a structured liquidity exit for early-stage institutional backers who have remained invested in the microfinance pioneer for over a decade:

  • Key Exiting Investors: Singapore’s sovereign wealth fund GIC and the International Finance Corporation (IFC) collectively held 30.3% of BFSL as of March 31.
  • Estimated Stake Valuation: Market sources value the combined 30.3% holding of GIC and IFC at $500 million to $600 million (~₹4,200 crore to ₹5,000 crore).
  • Additional Stakeholders: Other investors in BFSL include the Small Industries Development Bank of India (SIDBI) with 8.1%, the Financial Inclusion Trust and North East Financial Inclusion Trust (40.7%), and the Bandhan Employees’ Welfare Trust (14.6%). A wider exit could expand the deal size significantly.

Beyond IHC and FAB, prospective suitors canvassed across the Gulf and global private equity include the Qatar Investment Authority (QIA), Carlyle, and EQT.

Holding Company Architecture and RBI’s 2030 Ownership Cap

BFSL operates as an integrated holding powerhouse spanning banking, asset management, and life insurance:

  1. Bandhan Bank Stake: BFSL’s subsidiary, Bandhan Financial Holdings Ltd (BFHL), owns 37.5% of Bandhan Bank (which manages a ₹1.56 lakh crore loan book, ₹1.65 lakh crore in deposits, and 1,988 branches). Under the Reserve Bank of India’s (RBI) licensing mandates, the promoter must reduce its holding in the bank to 26% by 2030.
  2. Subsidiary Assets: BFSL also holds 59.98% in Bandhan AMC (co-owned with GIC and ChrysCapital), 97.16% in Bandhan Life Insurance, and AI/IT services arm Bandhan Technologies—which recently established an Abu Dhabi office and inked a pact with the Khalid Al Hamed Group’s KMK Group.

Why it matters

The Accelerating Gulf–India BFSI Investment Corridor

The talks underscore escalating West Asian interest in Indian retail lending following Emirates NBD’s $2.75 billion acquisition of RBL Bank in June 2026 and IHC’s $1.00 billion commitment into Sammaan Capital. With UAE FDI into India already standing at $25 billion and targeted to reach $100 billion, Gulf sovereign capital is rapidly emerging as a cornerstone investor across India’s BFSI landscape.

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Sources

Finsamudra Desk14 Oct 2026, 10:19 am IST
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