In a big relief to Bandhan Bank, the Reserve Bank of India (RBI) lifted its restrictions on branch expansion of the bank. The move will help the bank for further growth of the business and compliance with the regulatory guidelines, said Chandra Shekhar Ghosh, MD of the Bandhan Bank.
In a big relief to Bandhan Bank, the Reserve Bank of India (RBI) on Tuesday lifted the restrictions placed on Bandhan Bank and allowed it to open new branches.
The move will help the bank for further growth of the business and compliance with the regulatory guidelines, said Chandra Shekhar Ghosh, MD of the Bandhan Bank.
The regulatory restriction on branch opening were lifted subject to the condition that the bank ensures that atleast 25 percent of the total number of 'Banking Outlets' opened during a financial year are opened in unbanked rural centres.
Talking to CNBC-TV18, Ghosh said that the bank has 1,010 branches and 3,084 doorstep service centers. Total banking outlet are 4,288, he added.
"We have a plan to open 250 banking outlets including bank branches and others by March 2020,” Ghosh said.
In September 2018, RBI had placed restrictions on the bank from opening new branches without its approval. The banking regulator also ordered the private lender to freeze the salary of its chief executive Chandra Shekhar Ghosh over its failure to meet shareholding rules.
When asked about acquisition plans, Ghosh said, “We have no acquisition plan but we have a strategic plan for the bank. The way of strategy has been decided and will first compliance with the RBI guidelines.”
On asset quality front, he said Q3 asset quality was impacted due to the merger with Gruh Finance. However, we have seen an improvement in asset quality in Q4, he added.
Further, on Assam business, Ghosh does not expect any impact on the portfolio and sees an improvement in the operations in the state.
He said that credit growth is normal and NPA situation is improving.
Shares of Bandhan Bank rallied 4.80 percent to touch intraday high of Rs 423.25 on the BSE after the RBI lifted regulatory restrictions on the Bank.