Bandhan Bank has been penalized by the Reserve Bank of India with an aggregate monetary penalty of Rs 41.80 lakh following regulatory violations identified during a statutory inspection. The bank disclosed this development on April 24, 2026, in compliance with SEBI listing regulations.

Penalty Details and Regulatory Action

The RBI imposed the penalty through an order dated April 21, 2026, exercising powers under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The penalty stems from findings during the bank's statutory inspection for supervisory evaluation conducted with reference to its financial position as on March 31, 2025.

Violations Identified

The regulatory action addresses two specific areas of non-compliance:

• Banking Regulation Act Violation: Contravention of Section 20(1)(b)(iii) of the Banking Regulation Act, 1949
• KYC Compliance Failure: Non-compliance with RBI directions on 'Know Your Customer' requirements, specifically regarding periodic review of risk categorization of certain categories of accounts

Regulatory Framework and Timeline

The penalty order follows the standard regulatory process where RBI conducts statutory inspections to evaluate banks' compliance with various regulations and guidelines. The bank received the RBI communication on April 24, 2026, and promptly disclosed the matter to stock exchanges as required under Regulation 30 of SEBI LODR.

Impact Assessment

Bandhan Bank has stated that the penalty will not have any material impact on its financial, operational, or other activities. The bank emphasized that this is a regulatory compliance matter and does not affect its core business operations or financial performance. The disclosure has been made available on the bank's official website at www.bandhan.bank.in as part of transparency requirements.

Bandhan Bank Limited has announced the grant of stock options under its Employee Stock Option Plan Series 1, demonstrating the bank's commitment to employee incentivization through equity participation. The Nomination and Remuneration Committee of the Board approved this grant on April 22, 2026, as part of the bank's ongoing employee benefit initiatives.

Stock Option Grant Details

The committee granted 10,000 equity stock options to an eligible employee under the Bandhan Bank Employee Stock Option Plan Series 1 - Tranche 7. The grant was made in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full regulatory adherence.

Pricing and Regulatory Compliance

The grant price of Rs. 176.13 per option was determined based on the latest available closing price on the National Stock Exchange of India Limited on Tuesday, April 21, 2026. This pricing methodology follows the trading day immediately preceding the grant approval date, ensuring market-based valuation.

The Employee Stock Option Plan Series 1 has been formulated and approved by shareholders pursuant to SEBI (Share Based Employee Benefits) Regulations, 2014, which was subsequently replaced by SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Vesting Schedule and Exercise Terms

The granted options follow a systematic vesting structure designed to promote employee retention and long-term commitment:

Each stock option carries the right to apply for and be allotted one equity share of face value Rs. 10 each of the bank. The exercise period extends for a maximum of five years from the date of respective vesting of options, providing flexibility for the option holder.

Corporate Governance and Disclosure

The bank has fulfilled its disclosure obligations under Regulation 30 of SEBI LODR, demonstrating transparency in corporate governance practices. The announcement was made simultaneously to both BSE Limited and National Stock Exchange of India Limited, with the disclosure also uploaded on the bank's official website at www.bandhan.bank.in .