Shares of Bandhan Bank on Tuesday gained over 2 per cent after the company said the Reserve Bank has fully withdrawn the restrictions imposed on the private sector lender for high promoter holding, nearly two years after imposing them. The stock rose by 2.47 per cent to Rs 294.40 on the BSE.
At the NSE, it jumped 2.47 per cent to Rs 294.40. The restrictions included seeking prior approvals for network expansion, and also freezing managing director and chief executive Chandra Shekhar Ghosh's remuneration.
Earlier this month, the bank's promoter Bandhan Financial Holdings sold shares worth USD 1.4 billion or over Rs 10,500 crore at a discount to reduce its stake by over 20 per cent to 40 per cent, the level acceptable for the regulator. In September 2018, the RBI had imposed the restrictions, and did away with the condition of seeking approval for opening banking outlets in February this year.
The RBI, vide its communication dated August 17, 2020 has lifted the other regulatory restriction (on) 'the remuneration of the MD and CEO of the bank stands frozen, at the existing level', the bank said. Consequent to the above, all the regulatory restrictions imposed by the RBI vide letter dated September 19, 2018, on the Bank are now withdrawn, it added.
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