Bandhan Bank down 20% as it considers options to cut promoter stake
Kolkata-headquartered Bandhan Bank’s stock plummeted 19% after it announced its intention of exploring “inorganic opportunities” to slash promoter stake to 40% as directed by the RBI.
According to licensing norms, a non-operating financial holding company (NOFHC) is allowed to pursue non-banking financial services business for three years after beginning business. Further, as per rules, the bank had to bring down its promoters stake from the current 82.28% within three years. Since the bank began its business in August 2015, it had to ideally reduce its stake in August 2018.
At an analysts call on Saturday, the bank clarified that it will look out for inorganic opportunities in MSME finance and affordable housing finance in line with the bank’s overall strategy for growth. Reportedly, it may also get into the mutual fund or insurance business at the holding company level.
Incidentally, investors have been worried about the RBI’s decision disallowing the bank from opening new branches and suspending the remuneration of its MD and CEO. Meanwhile, the bank has permission to open branches after obtaining RBI’s permission.