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India's Bandhan Bank mulls M&A deals, other options to reduce promoter stake

India's Bandhan Bank Ltd. is considering three options, including M&A deals, to comply with the Reserve Bank of India's promoter shareholding rules, Mint reported Oct. 11, citing the lender's CEO Chandra Shekhar Ghosh.

This comes after Bandhan Bank was not able to reduce the stake of its nonoperative financial holding company to 40%, from 82%, as required by the central bank under licensing norms for banks.

Its promoter, Bandhan Financial Holdings Ltd., had to cut its stake within three years of commencing the business, a deadline that ended Aug. 23, the report said.

Ghosh said the bank is considering offering for sale its promoter's shares, an M&A deal, or a primary or secondary fund raising, to meet central bank demands. A plan will be submitted soon, he added.