SBI Mutual Fund Increases Stake in Bandhan Bank

SBI Mutual Fund Increases Stake in Bandhan Bank to Over 5%

SBI Mutual Fund, India's largest mutual fund house by assets under management (AUM), has raised its stake in private sector lender Bandhan Bank through open market purchases. The move has taken the mutual fund's holding in the bank past the 5% mark.

According to an exchange filing, SBI Mutual Fund acquired 16,98,478 shares of Bandhan Bank on 20 May 2026, raising its holding to 8,12,46,734 shares or 5.0432%. Prior to the purchase, SBI Mutual Fund held 7,95,48,256 shares or a 4.9378% stake in the bank.

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The acquisition was made under SBI Mutual Fund's various schemes, as disclosed in an exchange filing. The filing stated that the mutual fund has acquired 16,98,478 shares of Bandhan Bank on 20 May 2026, resulting in the acquisition of above 5% of the paid-up share capital of the company.

Bandhan Bank's share price has remained in a positive trajectory in the near term. The stock has risen 10.5% in a month, 14% in three months, and a whopping 35% on a year-to-date (YTD) basis. Meanwhile, the stock is up 18% in a year.

On a longer time frame of three years, Bandhan Bank stock has lost 20% in three years and 35% in five years.

The company had posted a strong set of earnings for the fourth quarter of the financial year 2025-26 (FY26). The Q4 Profit After Tax (PAT) jumped 68% year-on-year (YoY) and 159% quarter-on-quarter (QoQ) to ₹530 crore, and the net interest income (NII) was higher by 1.4% YoY and 4% QoQ to ₹2800 crore. Overall revenue was higher by 3.2% YoY and 5.5% QoQ to ₹3,570 crore. Meanwhile, the operating profit declined 8.3% YoY and 0.3% QoQ.

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The bank's asset quality also improved significantly, with gross non-performing assets (NPA) declining to 3.3% from 4.7% a year ago, while net NPA fell to 1% from 1.3%. Lower slippages and improved recoveries reduced incremental stress, aiding profitability despite provisions of ₹677 crore during the quarter.

Bandhan Bank's Managing Director and Chief Executive Officer (MD & CEO) Partha Pratim Sengupta has stated that the bank will continue to pursue customer-centric, digital-led growth by enhancing distribution channels, expanding its product suite, and leveraging data-driven insights to deliver sustainable, risk-adjusted growth.