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Last Updated : Dec 13, 2018 02:34 PM IST | Source: CNBC-TV18

Exploring options to reduce promoter shareholding: Bandhan Bank

Chandra Shekhar Ghosh, CEO of Bandhan Bank, said the bank is closely working on completing the compliance of RBI guidance on shareholding norms.

CNBC TV18 @moneycontrolcom

Kolkata-based private lender, Bandhan Bank, on December 13 said it's exploring all options to reduce promoter shareholding, be it through inorganic route, sale or exit from the holding company.

In an interview to CNBC-TV18, Chandra Shekhar Ghosh, managing director and chief executive officer, said the bank is closely working on completing the compliance of Reserve Bank of India's (RBI) guidance on shareholding norms.

RBI had imposed restrictions on Bandhan Bank's branch expansion after it failed to pare promoters' stake to 40 percent from close to 82 percent, within the stipulated three-year time frame.

Ghosh said Bandhan Bank has received approval for opening of 40 branches before December 31, 2018 from the RBI and the bank opened 5 new branches on December 12. So, the total bank branches of Bandhan Bank would rise to 978 from 938 by year-end.

On the business front, he said deposit and current account savings account (CASA) ratio growth has been in-line with earlier growth rates and expects a huge jump in cost to income ratio on account of branch expansions as the business from the already opened branches is much higher.

The CEO said he is not overly worried about the exits of retail banking head Rahul Johri and MFI lending chief Prasanta Kumar Sahu from the bank as other eminent people have joined.

 

Source: CNBC-TV18
First Published on Dec 13, 2018 02:34 pm
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