Bandhan Bank continues to rally as RBI lifts curbs on branch expansion

Extending the winning streak to the fifth straight day, shares of Bandhan Bank Monday gained more than 7 per cent after the Reserve Bank of India allowed the private bank to open new branches.

The stock of the Kolkata-based lender increased by 5.74 per cent to end at Rs 563.70 on BSE. During the day, it touched a high of Rs 573.40, up 7.55 per cent from the previous close.

Similarly on NSE, the stock rose 7.12 per cent to close at Rs 571.80. The scrip soared 7.21 per cent in the intra-day trade to Rs 572.30.

In volume terms, a total of 1.94 lakh shares were traded on the BSE, while over 19 lakh shares changed hands on the NSE.

The bank's counter has rallied over 20 per cent since December 11.

Market analysts said the rally in Bandhan Bank is mainly due to RBI lifting its restrictions on the bank's branch expansion plan.

On Wednesday, the bank's CEO C S Ghosh had said the lender would add another 40 branches by December 31, thereby taking the total number of branches to 978.

RBI had earlier imposed restrictions on Bandhan Bank's branch expansion after it failed to pare promoters' stake to 40 per cent from close to 82 per cent within the stipulated three-year time frame.