Bandhan Bank on Saturday said the restrictions imposed by the Reserve Bank of India (RBI) on its branch expansion is not likely to impact its business growth and that the bringing down of promoter holding in the private sector bank to the stipulated 40 per cent level cannot happen “overnight”.
In a conference call with investors, conducted by Kotak Institutional Equities, the bank’s MD and CEO Chandra Shekhar Ghosh, however, said, “We are trying to satisfy the compliance as early as possible.” On Friday the bank said the RBI has barred the bank from opening new branches and also frozen the remuneration of Ghosh at the existing level till further notice as the lender has not been able to bring down the promoter holding to 40 per cent in three years’ time from starting its operation.
CFO Sunil Samdani said the lender did not foresee any challenges in its regular business growth despite restrictions on opening new branches. FE
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