The Reserve Bank of India (RBI) has granted approval to SBI Mutual Fund to acquire an ‘aggregate holding’ of up to 9.99% of the paid-up share capital or voting rights in Bandhan Bank Limited. This approval, dated February 25, 2026, is conditional on compliance with banking and securities regulations. SBI Mutual Fund must complete the acquisition within one year, or the approval will be cancelled, and holdings must remain below the 9.99% threshold at all times.
Regulatory Approval for Shareholding Increase
Bandhan Bank Limited has officially disclosed that the Reserve Bank of India (RBI) provided clearance for an investment proposal on February 25, 2026. The approval allows SBI Mutual Fund (the ‘applicant’) to acquire an ‘aggregate holding’ that can reach up to 9.99% of the Bank’s total paid-up share capital or voting rights.
Conditions of Approval
The grant of approval is strictly conditional. SBI Mutual Fund must adhere to all provisions outlined in the Banking Regulation Act, 1949, and the specific RBI Directions governing the acquisition and holding of shares in commercial banks, dated November 28, 2025. Furthermore, compliance with FEMA, SEBI regulations, and other applicable statutes is mandatory.
Time-Bound Mandates
The RBI has set clear timelines for the transaction. If SBI Mutual Fund fails to secure the major shareholding within a period of one year from the date of the RBI letter, the entire approval will be automatically cancelled. Additionally, the applicant is expressly required to ensure their ‘aggregate holding’ never exceeds the approved 9.99% limit at any time.
Future Acquisition Triggers
The disclosure also noted a crucial regulatory safeguard: if the applicant’s holding subsequently falls below 5% at any point, the RBI’s prior approval will be required again before they can increase their stake back to 5% or higher of the Bank’s paid-up share capital or voting rights.
Source: BSE
