Bandhan Bank Shares Crash By 20%, Hit New All-Time Low

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    The shares of Bandhan Bank saw its biggest single-day decline at 20 percent on Monday, on account of the Reserve Bank of India's decision to put restrictions on the lender's operations. On Friday, after market hours, the bank in a statement said that RBI had barred it from opening any new branches and paying its CEO Chandra Shekhar Ghosh any remuneration, until further notice.

    Bandhan Bank Shares Crash By 20%, Hit New All-Time Low
     

    The bank had failed to comply with regulations of RBI that require it to reduce the bank promoter's (Ghosh) stake to 40 percent from 82 percent within 3 years of commencing operations. It had started its business in 2014.

    The shares of Bandhan Bank have been trading at Rs 451.20 a piece today, 20 percent lower than its previous close. The new low all-time low for the recently listed lender could mean a loss of $2 billion in its market value.

    The Kolkata-based lender will now be looking at different options, including acquisitions in order to bring down the shareholding, it said in an analyst call, as per Bloomberg reports.

    Kotak Mahindra Bank faced a similar situation last month after it failed to reduce the stake of its promoter, Uday Kotak. Its share price had then fallen by 12 percent. The private lender has to reduce its chairman's stake in the bank to less than 20 percent in the next three months from the present 30.3 percent.

    Read more about: bandhan bank
    Story first published: Monday, October 1, 2018, 13:05 [IST]
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