** Shares of Merchants Bancorp down 3.5% after NINGI Research discloses short position

** Accuses bank of "reckless expansion" and highlights risks from its commercial real estate loan portfolio

** Says MBIN granted loans to bad actors, like landlords prosecuted by State Attorney Generals

** Warns the bank's bad loans may shoot higher

** MBIN did not immediately respond to a Reuters request for comment

** Reuters could not independently verify the allegations made in the report

** Stock up 5% YTD as of last close

(Reporting by Niket Nishant in Bengaluru)

((Niket.Nishant@thomsonreuters.com))