RBI cancels Bandhan Bank’s permission for new branches, freezes chief’s pay

RBI cancels Bandhan Bank’s permission for new branches, freezes chief’s pay

Bandhan Bank on Friday informed stock exchanges that the Reserve Bank of India (RBI) had cancelled the permission given to it for opening new branches. The action has been taken because of the bank’s failure to bring down its non-operative financial holding company (NOFHC) shareholding to 40 per cent.
The bank also said that remuneration of the bank’s managing director & chief executive, Chandra Shekhar Ghosh, stood frozen at the existing level until further notice.
RBI has communicated to us that since the bank was not able to bring down the shareholding of NOFHC to 40 per cent as required under the licensing condition, general permission to open new branches stands withdrawn and the bank can open branches with prior approval of RBI and the remuneration of the MD & CEO of the bank stands frozen at the existing level, till further notice,” the bank said in its disclosure to the listing department of the National Stock Exchange.
Bandhan Bank assured that it was taking necessary steps to comply with the licensing condition to bring down the NOFHC shareholding to 40 per cent.

Author: Tultul Kutum

I am a policeman, article writer & YouTuber

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