RBI lifts ban on Bandhan Bank network expansion
PTI, Feb 26, 2020, 2:49 PM IST
New Delhi: The Reserve Bank on Tuesday allowed Bandhan Bank to expand its branch network after considering the efforts made by the private lender to comply with the licensing conditions.
The central bank in September 2018 had barred Bandhan Bank from expanding its network as the lender failed to reduce the promoters’ stake to 40 per cent from close to 82 per cent within the stipulated three-year time frame of commencing operations.
“We would like to inform that the Reserve Bank of India vide its letter dated February 25, 2020, 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,” Bandhan Bank said in a regulatory filing.
Currently, the promoters’ holding in the bank is 62 per cent.
The bank said RBI has lifted the regulatory restriction on branch opening, subject to the condition that the bank ensures that at least 25 per cent of the total number of banking outlets opened during a financial year are opened in unbanked rural centres, it added.
Bandhan Bank had commenced operations on August 23, 2015.
According to RBI’s bank licence norms, a private sector bank’s promoter will need to pare holding to 40 per cent within three years, 20 per cent within 10 years and to 15 per cent within 15 years.
Bandhan Bank currently has 4,288 banking outlets, including branches.
Bandhan Bank shares closed at Rs 403.85 on BSE, down 1.15 per cent from the previous close.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
CBDT allows tax officials to waive or reduce interest due from assessee
Markets fall in early trade amid unabated foreign fund outflows
New software for fast-tracking project approvals: Karnataka Minister Patil
In-flight passengers can access WiFi services only when allowed, say new rules
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
MUST WATCH
Latest Additions
Kambala – PETA PIL: Karnataka HC adjourns hearing to Nov 12
EC updates Maharashtra voter list; Shahada seat has 3 candidates in fray, Nanded North 33
Millions cast vote in historic US presidential election
Wine Merchants’ Association alleges corruption in excise dept, Minister Thimmapur refutes charge
Folk singer Sharda Sinha passes away
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.