Reserve Bank may offer Bandhan Bank more time to lower its promoters’ share

The Reserve Bank of India may offer additional time to Bandhan Bank to decrease its promoter shareholding in the bank.

According to India’s leading newspaper, Times of India, “RBI is looking to address the issue in a comprehensive manner in the coming days.”

As per the RBI’s bank license rules, “The promoters of private banks need to reduce their shareholding to 40% within the three years, 20% in 10 years and par it to 15% in 15 years.”

The data available in the Stock Market shows that the Bandha bank’s promoters still hold a 61 percent share in the bank.

In September 2019, RBI restricted the bank from opening new branches until it brings down its promoter shareholding to 40 percent and also fined the bank with Rs 1 crore for not meeting with the RBI rules in October last year.