Accordingly, the Bandhan bank had to reduce its promoter stake from 82 to 40% by August 2018 as per RBI rules. But the bank failed.
Mumbai| The Reserve Bank of India has imposed a penalty of Rs 1 crore on Bandhan Bank Limited. The action was taken against Bandhan Bank on Tuesday for not fully complying with the licensing rules. The bank has not been able to reduce its promoter holdings in due course. In addition, the RBI has imposed a fine of Rs 1 crore on Janata Cooperative Bank of the cooperative sector and 25 lakh on Jalgaon People’s Co-operative Bank.
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Bandhan Bank started banking operations in 2015
Bandhan Bank got a general banking license from RBI in 2014. Subsequently, in August 2015, it started fully banking operations. According to RBI‘s licensing rules, a bank has to bring down the promoter’s stake below 40% within 3 years of commencement of operations.
Accordingly, the Bandhan bank had to reduce its promoter stake from 82 to 40% by August 2018. But the bank failed. Only a few months ago, the bank’s home finance was merged. Since then, the shareholding of the promoters has reduced from 82% to 61%, but this is still more than the rules of RBI.
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