Bandhan Bank Promoter Sells 2.06% Stake for SEBI Compliance

Bandhan Bank's promoter, Bandhan Financial Holdings Limited (NOFHC), has sold approximately 2.06% of its stake in the lender. The sale involved 33,107,015 shares, reducing NOFHC's total shareholding in Bandhan Bank from 40.00% to 37.93%.

This divestment is a strategic move by NOFHC to comply with Securities and Exchange Board of India (SEBI) regulations concerning promoter shareholding limits for listed entities. Banks are required by SEBI to maintain a minimum public shareholding of 25%, necessitating promoters to reduce their stake if it exceeds certain thresholds.

NOFHC has been progressively reducing its stake in Bandhan Bank over time as part of a long-term strategy to align with SEBI's minimum public shareholding (MPS) requirements. These sales, conducted through market transactions, are necessary steps to meet regulatory timelines and thresholds.

The reduction in promoter shareholding to 37.93% brings Bandhan Bank closer to meeting regulatory requirements for public float. This ensures both the bank and NOFHC remain compliant with shareholding limit norms.

The primary focus for the promoter remains the continued adherence to SEBI's shareholding limit regulations.

Bandhan Bank operates in a competitive landscape alongside other small finance banks like AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank, all of which manage their own shareholding structures.