Bandhan Bank on Monday said that the Reserve Bank of India (RBI) has lifted restrictions on the remuneration of MD & CEO of the bank after it met regulatory norms on promoter stake.
This was done after Bandhan Bank’s promoter entity Bandhan Financial Holdings Ltd (BFHL), a non-operating financial holding company, successfully brought down its stake to 40 percent in the Bank from an earlier level of around 61 percent by selling shares in a block deal on August 3, 2020.
"As per the intimation, we have received a communication from the Reserve Bank of India dated August 17, 2020, vide which the RBI has lifted the freeze on the remuneration of the MD and CEO of the Bank, at the existing level," the bank said in a release.
The banking regulator, on September 19, 2018, had imposed two restrictions on Bandhan Bank due to pending dilution of the promoter’s shareholding in the Bank.
The other restriction barred the bank from expanding its network and prior approval of the RBI was required to open new bank branches. This restriction was lifted on February 25, 2020.
Consequently, all regulatory restrictions imposed by the RBI on the Bank are now withdrawn.
First Published: IST