Bandhan Bank fined Rs 1 crore for not bringing down promoter stake

The Reserve Bank of India (RBI) has imposed a fine of Rs 1 crore on Bandhan Bank for not bringing down the promoters’ stake in the bank to 40 per cent in the stipulated time period.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank,” the RBI said in a release.

The private lender was supposed to bring down the shareholding of its non-operative financial holding company, Bandhan Financial Holdings, in the bank to 40 per cent within three years of commencement of business of the bank.