Comments
The RBI on Friday pulled up Bandhan Bank for its failure to bring down promoter holding to 40 per cent as mandated in the licensing norms for universal bank. The central bank has withdrawn permission to open new branches and put a freeze on the remuneration of the MD&CEO, CS Ghosh.
Promoter holding in the bank currently stands at 82.28 per cent.
“RBI has communicated to us that since the bank was not able to bring down the shareholding of Non-Operative Financial Holding Company (NOFHC) to 40 per cent as required under the licensing condition, general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD&CEO stands frozen at the existing level, till further notice,” the bank said in a communication to the bourses on Friday.
The bank is taking necessary steps to comply with the licensing condition to bring down the shareholding of NOFHC in the bank to 40 per cent and shall continue to engage with RBI in this behalf, the bank said.
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.