Bandhan Bank shares trim gains as lender denies First Abu Dhabi Bank stake buyout report

"The bank categorically denies the reported speculation regarding any acquisition related discussions or proposal involving Bandhan Bank and First Abu Dhabi Bank," it said adding that "The Bank would like to state that it gives utmost importance to regulatory compliance and continues to
comply with the applicable requirements under Regulation 30 of the SEBI LODR, from time to time."

From day's high of Rs 157.40 apiece, Bandhan bank shares fell to Rs 152.95, still trading about 1.5 per cent higher for the day. The lender has 13 'Buy' calls, 11 'Hold' recommendations and four 'Sell' calls. Its 12-month Bloomberg consensus target stood at 193.50, implying 25 per cent potential upside from the prevailing levels.

As per a Moneycontrol report, the United Arab Emirate's largest lender, First Abu Dhabi Bank (FAB), was scouting an acquisition target in India. The bank is keen on buying a mid-sized domestic private bank, it said quoting sources aware of FAB's strategy.
The report suggested a banker as saying that FAB had evaluated a few options, though nothing was immediate. It suggested that FAB’s senior management probably held meetings with Bandhan Bank and a Kerala-based bank.

As per the report, FAB was keen to acquire a 51 per cent majority ownership if the plan fructifies. Many mid-sized banks such as Bandhan Bank and old private banks, including CSB and South Indian Bank, are trading at book value or slightly lower, the report suggested.