Bandhan Bank open for inorganic opportunities, to evaluate new businesses
Kolkata, Oct 1 : Bandhan Bank on Monday said the lender is "open to explore inorganic opportunities" and "will evaluate" getting into new businesses such as insurance and mutual fund going forward under its holding company, which will help to dilute shareholding of the Non Operative Financial Holding Company (NOFHC) into the bank.
Reserve Bank of India (RBI) recently withdrew general permission to open bank's new branches and froze the remuneration of the lender's MD and CEO Chandra Shekhar Ghosh till further notice as the bank was not able to bring down the shareholding of NOFHC, Bandhan Financial Holdings Limited (BFHL), to 40 per cent, as required under the licensing condition.
According to RBI's new banking licensing norms, any bank offering 'universal' services will have to bring down the promoter holding to 40 per cent in three years from the date of commencement of business.
The bank had completed three years of operations this August. The promoter holding in the bank currently stands at around 82 per cent after a successful Initial Public Offer (IPO), launched in March this year.
"As you are aware that we have come out with an IPO in March of 2018, whereby all existing shareholders, including BFHL are under lock-in for a period of one year till March 2019 as per SEBI regulations. So, till the time we are in lock-in, there cannot be any secondary sale by the promoter," the lender said in a regulatory filing on Monday, referring to a conference call held on Saturday.
"And post this lock-in the shares will be available to freely trade. NOFHC, which is the holding company of the bank, as per the licensing conditions, after the three years of starting of the business, can get into other financial services business other than banking like insurance and mutual fund. So that option is available to us now that three years is over, and we will evaluate getting into these new businesses going forward which will help us dilute our shareholding of NOFHC into the bank," said lender's CFO Sunil Samdani during the call.
Further, in line with its strategy to grow business, which is microfinance, MSME and affordable housing, the lender will continue to grow its business organically, he said.
"We are open, however, if it makes sense and is in line with our strategy of MSME, micro and affordable housing to explore inorganic opportunities as well. So, a combination of this will help us reduce our shareholding," Samdani said.
He said if it has to do any para-banking activities it "has to be housed under the NOFHC and not under the bank".
As of June 2018 we already have 937 branches and the lender was pursuing a strategy to take this to 1,000.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
RCB beat MI by 18 runs after batters fire
Mumbai (PTI): Royal Challengers Bengaluru skipper Rajat Patidar, Phil Salt and Virat Kohli blasted half-centuries as the defending champions beat Mumbai Indians by 18 runs in an Indian Premier League match here on Sunday.
Salt (78 off 36 balls) and Kohli (50 off 38 balls) stitched together a 120-run stand for the opening wicket before Patidar scored a rapid 53 off just 20 balls as RCB posted 240 for 4.
In response, Mumbai Indians were restricted to 222 for 5, with RCB spinner Suyash Sharma (2/47) putting the skids on the home side with a double strike in the eighth over, from which they could not recover.
Sherfane Rutherford top-scored for MI with an unbeaten 71 off 31 balls.
While opener Rohit Sharma appeared to be struggling with a hamstring issue and had to retire hurt on 19, his partner Ryan Rickelton made 37, while Suryakumar Yadav (33) and Hardik Pandya (40) were the other contributors for MI.
Brief scores:
Royal Challengers Bengaluru 240 for 4 in 20 overs (Phil Salt 78, Virat Kohli 50, Rajat Patidar 53, Tim David 35 not out).
Mumbai Indians: 222 for 5 in 20 overs (Sherfane Rutherford 71 not out, Ryan Rickelton 37, Hardik Pandya 40; Suyash Sharma 2/47).
