RBI lifts curbs on Bandhan Bank CEO's pay package after promoter cuts stake

According to RBI's licensing norms, any bank offering 'universal' services needs to bring down the promoter's stake to 40 per cent in three years from the date of commencement of operations

The Reserve Bank of India (RBI) has lifted the restrictions imposed on the remuneration of private lender Bandhan Bank’s managing director and chief executive officer (MD&CEO) – Chandra Shekhar Ghosh, after the bank's promoter, Bandhan Financial Holdings, reduced its stake in the bank to 40 per cent by offloading 21 per cent stake earlier this month, to meet the regulator’s ownership norms.

The private lender, in a statement to the exchanges, said that the RBI vide its communication dated August 17, 2020 lifted the other regulatory restriction "the remuneration of the MD & CEO of the bank stands frozen, at