Bandhan Bank has received regulatory approval for a significant shareholding acquisition by SBI Mutual Fund. The Reserve Bank of India granted approval on February 25, 2026, allowing SBI Mutual Fund to acquire up to 9.99% of the bank's paid-up share capital or voting rights.

RBI Approval Details

The central bank's approval comes with specific terms and conditions that SBI Mutual Fund must adhere to throughout the acquisition process.

Regulatory Compliance Requirements

The RBI approval is contingent upon strict adherence to multiple regulatory frameworks. SBI Mutual Fund must ensure compliance with:

• Banking Regulation Act, 1949
• Reserve Bank of India (Commercial Banks - Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025
• Foreign Exchange Management Act, 1999
• Securities and Exchange Board of India regulations
• Other applicable statutes, regulations, and guidelines

Key Conditions and Restrictions

The approval includes several important conditions that govern the acquisition process. SBI Mutual Fund must complete the major shareholding acquisition within one year, or the approval will be automatically cancelled. The entity must ensure its aggregate holding never exceeds the 9.99% threshold at any time.

Additionally, if SBI Mutual Fund's aggregate holding falls below 5% at any point, prior RBI approval will be required to increase it back to 5% or more of the paid-up share capital or voting rights.

Disclosure and Transparency

Bandhan Bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has informed both BSE Limited and National Stock Exchange of India Limited about this development and simultaneously uploaded the disclosure on its official website.

Bandhan Bank has announced its financial projections, outlining expectations for key performance metrics over the upcoming quarters. The bank's management has provided guidance on both profitability enhancement and credit cost management strategies.

Net Interest Margin Projections

The bank expects to achieve a substantial improvement in its Net Interest Margin (NIM) with an anticipated increase of 30 to 40 basis points over the next three quarters. This projection suggests the bank's confidence in optimizing its interest rate spreads and improving overall profitability from its lending operations.

Credit Cost Management

Bandhan Bank has established a clear target for its credit costs, aiming to achieve 1.7% by the end of FY27. This target reflects the bank's strategic approach to managing credit risk and maintaining asset quality standards.

Strategic Outlook

These financial projections demonstrate Bandhan Bank's focus on enhancing key profitability metrics while maintaining prudent credit risk management. The expected NIM improvement indicates the bank's efforts to optimize its interest rate management, while the credit cost target reflects a disciplined approach to asset quality maintenance.