Tangled up in regulatory knots, Bandhan Bank seeks a way out
Either Bandhan Bank was overconfident that its promoter shareholding will reduce by half in a jiffy or it decided to jump in without testing the depth of the waters
Dodging regulatory bullets is no easy task but to find oneself as the target of two regulators is unfortunate. Bandhan Bank Ltd has found itself at the receiving end of the Reserve Bank of India (RBI) for violation of a key norm—its promoter shareholding threshold. Indian bank licensing rules restrict the role of the promoter of a bank progressively by mandating a reduction in stake to 40% within three years of setting up shop.
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