Bandhan Bank on Monday said the RBI has lifted its freeze on the remuneration of the bank’s managing director and CEO Chandra Shekhar Ghosh.

The RBI on September 19, 2018, had imposed two restrictions on the city-based bank for non-compliance with its licensing conditions — opening of bank branches without the central bank’s prior approval and freezing the remuneration of the MD and CEO at the existing level.

According to the licensing conditions, the bank was supposed to bring down the promoter holding to 40 per cent of the total paid-up voting equity capital within three years from the start of operations, that is by August 22, 2018.

The bank amalgamated Gruh Finance Limited with itself effective from October 2019 and the shareholding of the non-operative financial holding company (NOFHC) was subsequently diluted to 60.96 per cent from 82.23 per cent. The bank further diluted the NOFHC holding through secondary market sale earlier this month.

“Considering the progress of the dilution of excess shareholding of NOFHC in the bank, RBI vide its letter dated February 25, 2020, has withdrawn the restriction imposed for obtaining prior approval of RBI for opening of banking outlets,” Bandhan Bank told the stock exchanges.

Chandra Shekhar Ghosh File picture

The statement added that RBI vide communication dated August 17, 2020 has lifted the other regulatory restriction of freezing the remuneration of MD and CEO of the Bank.

Ghosh had drawn a remuneration of Rs 2.1 crore in the last fiscal.

The Bandhan Bank scrip was down 0.31 per cent at Rs 287.30 a piece on the BSE.

With the clearance on remuneration freeze, the microfinance institution-turned-bank said that all regulatory restrictions are now withdrawn.

In its annual report, Bandhan Bank has disclosed that Ghosh had drawn a remuneration of Rs 2,10,41,874 in FY 2019-20.

The Bandhan Bank scrip was down 0.31 per cent at Rs 287.30 a piece on the BSE.