InvestorQ : How do you think that RBI allowing Bandhan Bank to open new branches benefit the stock?
Mitali Bhutta made post

How do you think that RBI allowing Bandhan Bank to open new branches benefit the stock?

Answer
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7 months ago


For Bandhan Bank this will withdraw the restriction on new branch opening that was first placed by the RBI in September 2018. After nearly 18 months, the restrictions have been lifted on Bandhan Bank. Now Bandhan Bank can open new branches without prior permission. RBI has noted that Bandhan Bank is still not in compliance with the licensing condition on dilution but the concession was being made due to the efforts made by the bank to complying with the licensing agreement. However, RBI has put a condition that at least 25% of the new branches opened during the year should be in unbanked rural areas. In another similar case, the RBI had agreed to give Uday Kotak more time to cut his stake in Kotak Bank but putting a cap on his voting rights. In the light of the concessions made to Kotak Bank, the RBI though it fit to remove the restrictions on Bandhan Bank also.