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

The action was taken because of the bank's failure to bring down the non-operative financial holding company's shareholding to 40 per cent

The Reserve Bank of India (RBI) has restrained Bandhan Bank from opening new branches and also ordered freezing of remuneration of its CEO Chandra Shekhar Ghosh for not meeting the licensing conditions, the newly-launched bank said Friday. 

The bank, on its part, said it is taking steps to comply with licensing condition to bring down the shareholding of non operative financial holding company (NOFHC) in the bank to 40 per cent. 

"RBI has communicated to us that since the bank was not able to bring down the shareholding of NOFHC to 40 per cent... general permission to open new branches stands withdrawn