HDFC, the parent company of Indian private-sector lender HDFC Bank, has acquired a 9.89% stake in Bandhan Bank.
Under the transaction, HDFC received around 159.3 million Bandhan Bank shares, PTI reported citing a regulatory filing.
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The transaction comes weeks after Bandhan Bank closed the acquisition of Gruh Finance, the home loan subsidiary of HDFC Bank. The deal was carried out to reduce promoter shareholding in Bandhan Bank and comply with the Reserve Bank of India (RBI) regulations.
The acquisition of Gruh Finance reduced promoter stake in the lender from 82.26% to 60.96%.
However, earlier this week, Bandhan Bank was fined by RBI for failing to dilute promoter shareholding to 40% within the stipulated timeline.
In the statement, RBI noted: “The bank was required to bring down the shareholding of its Non-Operative Financial Holding Company in the bank in excess of 40% of the total paid-up equity capital to 40% within three years from the date of commencement of business of the bank.”
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By GlobalDataRBI issued a show cause notice to the bank over the failure. After assessing the Bandhan Bank response, it imposed a fine of INR10m on the bank.
Bandhan Bank started commercial operations in 2015after receiving universal banking licence in the same year.
Currently, the bank has 4,229 banking outlets across India serving 18.3 customers.
Earlier this year, the lender announced plans to open 187 new branches by March 2020.
