RBI fines Bandhan Bank for not reducing promoter shareholding to 40%

The penalty has been imposed in exercise of powers vested in the RBI under the provisions of the Banking Regulation Act, 1949

The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 1 crore on Bandhan Bank for not bringing down the promoter shareholding to 40 per cent. Bandhan MFI had obtained in-principle universal banking license from the central bank in 2014 and started full-fledged operations as a bank from August 2015.

RBI imposed the penalty on account of failure to pare the shareholding of Bandhan Financial Holdings Ltd to 40 per cent of its paid-up voting capital, within three years from commencement of the business of the bank, the lender said in a BSE filing.

Bandhan Bank came out with