Bandhan Bank rose 2.17% to Rs 293.55 after the Reserve Bank of India (RBI) removed regulatory restrictions after bank complied with promoter shareholding norms.
As per the restriction imposed by RBI in September 2018, Bandhan Bank was required to take prior approval from the central bank for opening of a new branch. The remuneration of the MD & CEO of the bank was also frozen. The restriction was imposed as the bank's promoters failed to comply with licensing requirements of reducing their stake in the bank.The bank's promoter, Bandhan Financial Holdings, reduced its stake in the bank to 40% by offloading 2095% stake earlier this month, to meet the regulatory ownership norms.
Consequent to the stake sale, all the regulatory restrictions imposed by the RBI vide letter dated 19 September 2018, on the bank are now withdrawn.
The bank's standalone net profit fell 31.6% to Rs 549.82 crore on a 14.9% increase in total income to Rs 3,404.84 crore in Q1 June 2020 over Q1 June 2019.
Bandhan Bank operates as a commercial bank. It has spread its presence to 34 of the 36 states and union territories in India with 4,559 banking outlets serving 2.03 crore customers, as on 30 June 2020.
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