Bandhan Bank, which completed a successful IPO, saw its shares rose to Rs. 498.40 on its trading debut before closing at Rs 477.20, with a substantial gain of 102.20 points or 27.25% on the Bombay Stock Exchange. The bank had raised Rs 4,475 crore in the IPO, described as the biggest in the Indian banking sector. The IPO had been subscribed nearly 15 times, mainly driven by strong demand from institutional investors. The bank has its shareholders like Singapore’s GIC. What is significant about the bank’s operations is that despite having its origins as a MFI, it has very few bad loans compared to other banking institutions and has a net interest margin of close to 10%.
