Bandhan Bank will sell its ₹775-crore affordable house loan portfolio to Avenue Capital-backed Arcil for ₹280 crore. A planned cash transaction by the bank addresses financial challenges for low-income households struggling to repay housing loans of ₹10-12 lakh.

Bandhan Bank's request of bids for its INR 775-crore portfolio of problematic affordable housing loans may indicate lower-income hardship, according to sources.