Bandhan Bank promoter to gradually reduce stake to meet RBI norms
Bandhan Financial Services, the promoter of Bandhan Bank, has announced its intention to gradually reduce its stake in the bank. This reduction is aimed at complying with Reserve Bank of India regulations, with a target timeline of 2030. Recent steps include sales of shares conducted through the open market, which have already lowered the promoter's holdings. Additionally, a proposed stock split is on the agenda for the upcoming annual general meeting, a move designed to enhance liquidity and attract a broader base of retail investors.
What this means
This divestment aligns Bandhan Bank with RBI's ownership concentration norms for private sector banks. The planned stock split could boost trading liquidity and make the stock more accessible to retail investors, potentially broadening its shareholder base.
Most affected: Bandhan Bank investors and financial institutions with concentrated ownership
Key takeaway: Bandhan Bank's promoter will continue phased stake reduction; track the upcoming stock split decision for potential market impact.
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