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% 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% in three years’ time from starting its operation.
Talking to the investors during the conference call, the bank’s CFO Sunil Samdani said the lender did not foresee any challenges in its regular business growth despite restrictions on opening new branches. He further said Bandhan Financial Holdings (BFHL), which is the promoter of Bandhan Bank, was planning to venture into insurance and mutual fund business to dilute its stake in the bank. The bank was also looking to grow inorganically.