After receiving RBI notice for not complying on shareholding norms, Bandhan Bank lists options to cut promoters' shareholding

New Delhi, Oct 3 (KNN) Bandhan Bank laid out several options including inorganic growth after the Reserve Bank of India (RBI) has put curbs on it for not complying with shareholding norms.

These options were laid in order to reduce the promoters’ stake.

Chief Financial Officer, Sunil Samdani said that the bank would consider buyouts in the micro, small and medium enterprises (MSME), housing finance, and microfinance institution (MFI) space.

He said, to reduce the promoters’ shareholding, the bank would also look at entering the mutual fund and insurance business at the holding company level.

However, the holding company cannot sell any shares for entering other businesses during the lock-in period, according to the Securities and Exchange Board of India’s (SEBI’s) norms.

Another option that the bank will consider is a change in the holding company’s structure.

 Earlier, Bandhan Bank considered a proposal to reduce the promoters’ shareholding and to merge Bandhan Financial Services, Bandhan Financial Holding, and Bandhan Bank.

This merge would bring down the promoters’ holding to about 40 per cent.

Speaking about the option of secondary sale of shares, Samdani said that with the bank being adequately capitalised, any issuance would depend on fund requirements.