RBI has removed the restriction "considering the efforts made by the bank to comply with the said licensing condition, Bandhan Bank said in a regulatory filing to stock exchanges.
Bandhan Bank share price rose as much as 4.8 per cent to hit an intraday high of Rs 423.25 apiece on BSE in Wednesday’s trade after the Reserve Bank of India (RBI) lifted the ban on opening of new branches by the bank. RBI has removed the restriction “considering the efforts made by the bank to comply with the said licensing condition”, the Kolkata-based bank said in a regulatory filing to stock exchanges. Bandhan Bank shares closed at Rs 394.25 apiece, down 2.38 per cent on BSE in Wednesday’s trade. Bandhan Bank shares hit a 52-week low of Rs 391.55 apiece on BSE today. The share touched its 52-week high of Rs 650 on October 29, 2019.
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 per cent of the total number of banking outlets opened during a financial year are opened in unbanked rural centres, the company said in the press release.
Earlier in October 2019, the central bank had imposed a monetary penalty of Rs 1 crore on Bandhan Bank for non-compliance with the guidelines on promoter holding. The lender did not bring down the promoter holding to 40 per cent in three year’s time, following which the RBI restricted the bank from opening new branches. It also froze Bandhan Bank’s founder-cum-managing director Chandra Shekhar Ghosh’s salary at the September 2018 level.
Currently, Bandhan Bank has over 4,000 banking outlets across India with more than 1.9 crore customers. Out of these outlets, 1,009 are bank branches, 3,084 Doorstep Service Centres (DSCs) and 195 GRUK centres.