On Monday, Bandhan Bank said that the Reserve Bank of India (RBI) has lifted restriction imposed on the private bank after the promoter's stake was lowered to 40 percent.
The bank in a stock exchange filing said that " all the regulatory restrictions imposed by the RBI vide letter dated September 19, 2018, on the Bank are now withdrawn."
In September 2018, the central bank had imposed two restrictions on the bank:
- Prior approval of RBI was required for opening of banking outlets,
- the remuneration of the MD & CEO of the Bank stands frozen, at the existing level.
Considering the progress of the dilution of excess shareholding of promoter Bandhan Financial Holdings Limited in the bank to bring it to the required regulatory level of 40 percent, RBI in February this year had withdrawn the restriction imposed for obtaining prior approval of RBI for the opening of banking outlets.
On Monday, Bandhan Bank said that RBI in its communication dated 17 August 2020 has lifted the other regulatory restriction "the remuneration of the MD & CEO of the Bank stands frozen, at the existing level".