RBI fines Bandhan Bank for non-compliance
The country’s central bank, Reserve Bank of India on Tuesday imposed a penalty of Rs. 1 crore on Bandhan Bank for not complying with regulatory norms. RBI slapped this penalty due to failure to bring down the shareholding of Bandhan Financial Holding to 40 percent of its paid-up voting capital within three years from commencement of the business of the bank.
On 24th October 2019, the bank approved the proposal for an increase in the shareholding limits for FPIs and FIls from 24 per cent to 49 per cent of the paid-up share capital of the Bank under the overall permissible foreign limit in the Bank.
Also, recently, the Bandhan Bank had merged with Gruh Finance which has resulted in dilution of promoter shareholding (Bandhan Financial Holdings Limited) from 82.26 per cent to 60.96 per cent.
The stock of Bandhan Bank in today’s trading session was trading in negative terrain. The stock opened gap down at Rs. 615 as against previous close of Rs. 623.50 and later went down nearly 5 per cent to touch intra-day low of Rs. 593.80.