India’s Bandhan Bank on Tuesday denied that it was in acquisition talks with First Abu Dhabi Bank (FAB), the UAE’s largest lender, after a news report said FAB is looking to buy a mid-sized Indian private bank.
“The Bank categorically denies the reported speculation regarding any acquisition related discussions or proposal involving Bandhan Bank and First Abu Dhabi Bank,” the Kolkata-based lender said, according to The Economic Times.
Indian outlet Moneycontrol reported earlier on Tuesday that FAB is scouting an acquisition target in India, citing unnamed sources familiar with the bank’s strategy.
According to the report, FAB’s senior management held meetings with Bandhan Bank and a Kerala-based bank. One investment banker told Moneycontrol that nothing conclusive had emerged and that a deal could still be some time away.
Moneycontrol said FAB would seek a 51% majority stake if the plan goes ahead, and that it is interested in banks trading below book value. FAB did not respond to Moneycontrol’s request for comment.
Bandhan Bank shares were up 2.32% at 154.50 rupees as of 1:26 p.m. India time on Tuesday, The Economic Times reported. The stock closed at 157 rupees on Monday.
FAB has two branches in India, in Mumbai and at GIFT City in Gujarat.
The report comes about a year after Dubai’s Emirates NBD agreed its deal for India’s RBL Bank. India accounts for 5% of Emirates NBD’s deposits and 6% of its consolidated loan book, according to Moneycontrol.
