Comments
Shares of Bandhan Bank Ltd plummeted on Monday to lowest since their March debut, after the central bank withdrew permission to open new branches and froze the chief executive's remuneration at the current level until further notice.
The RBI had on Friday pulled up Bandhan Bank for its failure to bring down the promoter holding to 40 per cent, as mandated in the licensing norms for universal banks. The promoter holding in the bank at present is 82.28 per cent. The central bank also barred the bank from opening new branches and put a freeze on the remuneration of Bandhan Bank MD and CEO, Chandra Shekhar Ghosh.
The turmoil in the NBFC sector prompted the central bank, market regulator SEBI and the finance ministry to intervene with assurances.
Meanwhile, Bandhan Bank is open to exploring “inorganic opportunities” to pare down the promoters’ stake to the 40 per cent as mandated by the Reserve Bank of India in the licensing norms for universal banks.
In an analysts call on Saturday, Sunil Samdani, CFO, Bandhan Bank said the bank may look at inorganic opportunities in MSME finance and affordable housing finance in line with the bank’s overall strategy for growth. It may also consider getting into the mutual fund or insurance business at the holding company level.
Shares of the Kolkata-based bank fell as much as 20 per cent to Rs 452.20, with more than 3.7 million shares changing hands, compared with their 30-day average volume of 1.51 million.
(With inputs from Reuters)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.