On Tuesday, the RBI levied a penalty on new-age Bandhan Bank amounting to Rs. 1 crore for not reducing the promoter stake to 40%.
The micro finance institution began to operate as a full-fledged bank with effect from August 2015 after receiving RBI's in-principal universal banking license a year before.
In a BSE filing, Bandhan Bank said that the central bank levied penalty as the lender failed to reduce the stake of Bandhan Financial Holdings Ltd to 40% of its paid-up capital as per the SEBI ruling within 3 years from the commencement of banking business. In March 2018, the bank made its debut on the Indian bourses after an IPO issue.
After its merger with Gruh Finance, shareholding of the promoter came down to 60.96% from the earlier 82.26%. Earlier the bank reiterated that it is making efforts to pare stake to 40%.
Bandhan Bank trades lower by 0.51% or Rs. 3.15 at Rs. 620.35 apiece on the BSE after hitting an intra-day low of Rs. 593.80.