Just a few days after showing the door to founder CEO of Yes Bank, Rana Kapoor, the Reserve Bank of India (RBI) has now tightened the noose on Bandhan Bank.
Just a few days after showing the door to founder CEO of Yes Bank, Rana Kapoor, the Reserve Bank of India (RBI) has now tightened the noose on Bandhan Bank. The central bank has frozen remuneration of Bandhan Bank CEO Chandra Shekhar Ghosh and opening up of new branches until further notice.
Kolkata-based Bandhan Bank was not able to bring down the shareholding of Non-Operative Financial Holding Company (NOFHC) to 40% as required under the licensing condition, the bank said in a filing to stock exchanges. Bandhan Bank can, however, open branches after taking the prior approval the RBI.
Bandhan Bank will now engage with the RBI on complying with shareholding norms. “The bank is taking necessary steps to comply with the licensing condition to bring down the shareholding of NOFHC in the Bank to 40% and shall continue to engage with the RBI in this behalf,” it added.
Bandhan Bank is a Kolkata-based bank, which started as a micro-financing company in 2001 and received the banking license in 2014. It is presently the eighth largest bank by market capitalization.