Bandhan Bank gains 5% as RBI lifts restrictions on opening new branches

The central bank had barred Bandhan Bank in September 2018 from expanding its network as the lender had failed to reduce promoter stake to 40 per cent

Shares of Bandhan Bank rose as much as 5 per cent to Rs 423 on the BSE on Wednesday in intra-day trade after the Reserve Bank of India (RBI) lifted restrictions placed on the bank from opening new branches.

".. though the Bank is still not in compliance with the licensing condition on dilution, considering the efforts made by the Bank to comply with the said licensing condition, it (the RBI) has lifted the regulatory restriction on branch opening, subject to the condition that the Bank ensures that atleast 25 per cent of the total number of 'Banking Outlets' opened