Bandhan Bank slips to all-time low after RBI directive

Bandhan Bank slips to all-time low after RBI directive

Bandhan Financial Holdings Ltd. (Reuters file photo)

India's Bandhan Bank Ltd shares plummeted on Monday to lowest since their March debut, after the central bank withdrew permission to open new branches and froze chief executive's remuneration at the current level until further notice.

The Reserve Bank of India clamped down on the Indian lender for failing to bring down its main shareholder's stake to below 40 %.

Bandhan Financial Holdings Ltd, a so-called non-banking financial company (NBFC) that does not take deposits, owns an 82.28 % stake in the bank.

The turmoil in the NBFC sector prompted the central bank, market regulator SEBI and the finance ministry to intervene with assurances.

On a conference call on Saturday, the former micro lender said it was exploring options to reduce promoters' stake of its non-operating financial holding company to 40 %, including starting non-banking businesses at the NOFHC level, media reports said.

Shares of the Kolkata-based bank fell as much as 20 % to 452.20 rupees, with more than 3.7 million shares changing hands, compared with their 30-day average volume of 1.51 million.