How Bandhan Bank evaluates a settlement proposal

Bandhan Bank's recovery workflow runs through moderate-high — centralised committee. Committees benchmark every proposal against realisable value under SARFAESI, the age of NPA and Bandhan's internal sacrifice matrix. Below is the exact stage-by-stage playbook for a Bandhan Bank settlement — with who acts, how long each stage takes, and the Bandhan-specific behaviour at that stage.

End-to-end Bandhan settlement process

1
NPA classification
Account crosses 90-day overdue; system-marked sub-standard.
Bank system (auto) · Day 90
2
Reminder & collection
Telephonic + written reminders; recovery agency assigned for retail.
Collections / recovery cell · Day 90–150
3
Demand notice (13(2))
SARFAESI Section 13(2) demand notice issued; 60-day cure period starts.
Bank's authorised officer · Day 150–210
4
OTS proposal filed
Borrower files written OTS proposal with financial justification and source-of-funds plan.
Borrower / advisor · Any time after NPA
5
Internal review
Recovery cell prepares committee note: outstanding, security value, sacrifice, comparable settlements.
Recovery officer · 10–25 days
6
Negotiation rounds
2–4 rounds of counter-offers; borrower may be called for committee interaction.
Recovery committee · 15–30 days
7
OTS sanction letter
Bandhan Bank sanction letter carries a 30–45 day payment window.
Sanctioning authority · 3–7 days post-committee
8
Payment
Borrower pays as per sanction — usually lump sum or 2–3 tranches within validity.
Borrower · 60–150 days
9
NOC & security release
No Objection Certificate issued; mortgage / hypothecation released; original documents returned.
Bank (release cell) · 15–30 days post-payment
10
CIBIL update to 'Settled'
Bank reports status 'Settled' to all bureaus in the next reporting cycle.
Bank credit-reporting · 30–45 days post-NOC

Bandhan Bank sanctioning matrix — who approves what

Bandhan Bank's approval hierarchy determines both the discount ceiling and the timeline. Filing at the wrong tier is the single biggest reason Bandhan OTS proposals stall.

Authority	Exposure limit	Timeline	Decision criteria
Collections / Recovery Agent Team	Up to ₹5 lakh (unsecured)	3–10 days	Age bucket, prior EMIs, provision status
Recovery / Legal Cell — Deputy Head	₹5 lakh – ₹50 lakh	10–25 days	Written-off matrix, dispute risk
Regional Settlement Committee	₹50 lakh – ₹5 crore	20–40 days	Realisable security value, ageing, provision
Central Settlement Committee — CFO / CRO chaired	₹5 crore – ₹25 crore	30–60 days	Recoverable value vs ARC bid, litigation exposure
Board Risk / NPA Committee	Above ₹25 crore	45–90 days	Enterprise view + investor disclosure risk

Bandhan settlement timeline

Case assessment· 1–3 days

Statement + SARFAESI stage review

Proposal drafting· 5–10 days

Bandhan Bank format with sacrifice justification

Regional committee review· 20–35 days

1–3 rounds

Committee sanction· 5–15 days

45-day payment window

Payment· 45 days

NOC + CIBIL· 30 days post-payment

Common Bandhan rejection reasons — and how to fix them

Aggressive first offer

Why Bandhan rejects: Bandhan Bank's committee benchmarks against realisable value

Fix: Anchor at 55–65% of principal for secured with fresh valuation

Weak source-of-funds plan

Why Bandhan rejects: Committee discounts unsupported source claims

Fix: Attach audit-trail funding — loan sanction, sale MoU or bank statement

Wilful default flag

Why Bandhan rejects: RBI Master Direction 2024 needs additional Board approval

Fix: Contest classification separately

Missing hardship narrative

Why Bandhan rejects: Committee note requires a 'why'

Fix: 1–2 page written narrative with dated events

Documentation gaps

Why Bandhan rejects: Committee cannot decide on incomplete file

Fix: Submit complete file at filing

Bandhan product-specific settlement timelines

Product	Typical settlement	Timeline
Bandhan Suraksha Home Loan	60–75% of principal	75–130 days
Bandhan Personal Loan	28–48%	30–60 days
Bandhan Business Loan	50–70%	75–150 days
Bandhan EEB / Micro Loan	25–40%	30–75 days
CC / WC	45–65%	75–150 days
Bandhan LAP	55–72%	90–150 days
Overdraft	40–60%	45–90 days
Two-wheeler / Auto	45–65%	30–60 days
Bandhan Education Loan	38–58%	60–120 days
Credit Card (co-branded)	25–45%	30–60 days

Bandhan case studies — anonymised timelines & outcomes

Live examples of the Bandhan process working end-to-end — same stages as above, mapped to real timelines, discounts and committee outcomes. Client details are anonymised.

Case BAN-24-0189

EEB micro loan

Guwahati

70%

discount

Outstanding

₹1.4 lakh

Settled at

₹42,000

Timeline2 months

Challenge:: Flood-impacted repayment; group under stress
Strategy:: Individual OTS under RBI disaster-relief pathway
Outcome:: Sanctioned at 30% of outstanding

Case BAN-24-0367

Home loan

Kolkata

32%

discount

Outstanding

₹22 lakh

Settled at

₹15 lakh

Timeline4 months

Challenge:: 13(4) issued, auction in 45 days
Strategy:: DRT-SA + OTS at 68% principal
Outcome:: Sanctioned; auction withdrawn

Case BAN-23-0512

Business loan

Patna

42%

discount

Outstanding

₹38 lakh

Settled at

₹22 lakh

Timeline4 months

Challenge:: COVID legacy stress
Strategy:: Regional Committee OTS at 58%
Outcome:: Sanctioned

Client names and identifying details are anonymised. Amounts rounded. Outcomes reflect approved Bandhan settlements handled by NPA Experts and do not guarantee similar results — every case turns on documentation and committee discretion.

Why cases like these get rejected at Bandhan

Even a clean process fails when these Bandhan-specific gaps surface at committee review. Address them before your OTS is tabled.

Aggressive first offer
Why Bandhan rejects: Bandhan Bank's committee benchmarks against realisable value
How to fix: Anchor at 55–65% of principal for secured with fresh valuation
Weak source-of-funds plan
Why Bandhan rejects: Committee discounts unsupported source claims
How to fix: Attach audit-trail funding — loan sanction, sale MoU or bank statement
Wilful default flag
Why Bandhan rejects: RBI Master Direction 2024 needs additional Board approval
How to fix: Contest classification separately
Missing hardship narrative
Why Bandhan rejects: Committee note requires a 'why'
How to fix: 1–2 page written narrative with dated events
Documentation gaps
Why Bandhan rejects: Committee cannot decide on incomplete file
How to fix: Submit complete file at filing

Bandhan settlement process — city coverage

Deep-dive city hubs for Bandhan Bank settlement process. Every link uses the same Bandhan + city anchor pattern so search engines can map our coverage: