Bandhan Bank, which had closed yesterday at Rs.403.85, opened higher today at Rs.415, going up to an intraday high at Rs.423.25. It has since then come off this level and is now hovering around Rs.408 levels.
The Bank yesterday night informed the exchanges that RBI has lifted the restrictions placed on it for branch expansions. It can now open new branches without prior RBI permission.
The Bank said, “RBI has informed that though the Bank is still not in compliance with the licensing condition on dilution, considering the efforts made by the Bank to comply with the said licensing condition, it has lifted the regulatory restriction on branch opening, subject to the condition that the Bank ensures that at least 25 % of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres.”
Restrictions were placed on the bank as it did not meet RBI’s new bank licensing guidelines as per which, the bank’s promoter, Bandhan Financial Holdings Ltd, has to reduce its stake from 82% to 40% within three years of commencing the business.
The deadline for Bandhan Bank was on 23 August and it is yet to bring down the stake to the required limit. The bank has assured that it was taking necessary steps to comply with the licence condition on shareholding.
Promoter holding as at 31st Dec 2019 stood reduced at 60.96% from the previously held 82.26%.