The Kolkata-based new-age Bandhan Bank will reduce promoter holding in the entity to 40% as mandated through an offer for sale and the institution is not considering any further acquisitions, said the bank's CEO and MD Chandra Shekhar Ghosh.
After the announcement of its Q4FY19 earnings results, Ghosh told reporters, "We cannot go for any further acquisition and the option is to have an offer for sale."
In 2012, the SEBI introduced the mechanism of OFS that allows promoters to offload their stake in listed companies.
Earlier in January, the bank announced acquisition of Gruh Finance in a share swap deal. Through the strategic development, promoter holding of Bandhan Financial Holdings Ltd in the bank will be reduced from 82% currently to 61%.
Concerning the acquisition Ghosh said, "Now we need the approval of NCLT and whenever the approval comes, we will merge the entities. However, we cannot give a timeline for the NCLT approval". The deal came in after the RBI barred the bank from opening new branches without its approvals as also directed the bank to freeze the salary account of its MD as the bank failed to comply with the SEBI's shareholding norms.
As per the central bank's new guidelines for banking license, Bandhan Bank's promoting company had to decrease its holding in the bank from 82% to 40% by August 23, 2018, within 3 years of commencing business activity.
On Thursday, Bandhan Bank for the quarter ended March reported net profit of Rs. 651 crore, up 68% y-o-y.
Bandhan Bank closed the trading session on Thursday with gains of 4.11% or Rs. 24.60 at Rs. 622.60 on the BSE.