Within minutes of opening, Bandhan Bank hit the 20% LC in the morning at Rs.451.20, a new 52-week low.
On Friday, RBI communicated to the Bank that since it was not able to bring down the shareholding of Non Operative Financial Holding Company (NOFHC) to 40% as required under the licensing condition, the RBI was withdrawing general permission to open new branches stands.
It can now open branches only after getting RBI approval.
RBI has also directed that the remuneration of the MD & CEO of the Bank stands frozen at the existing level, till further notice.
The Bank has said that its promoters will look at various options, including acquisitions, to bring down shareholding in line with the RBI norms.
As at 30th June 2018, the promoters held 82.28% stake in the bank and for bringing down the stake to 40%, surely it is going to take some time. It is expected that Bandhan Bank will now scout around for acquiring stake in businesses. This RBI directive though will not be a drag on the earnings of the Bank, at least in the immediate near term.