Bandhan Bank owner to slowly sell stake by 2030

How does Bandhan Bank make money?

Bandhan Bank makes money the same way most banks do: it takes in people's deposits and lends that money out to others, charging borrowers interest and fees. The people who borrow pay the bank, and the bank pays depositors a smaller amount, keeping the difference. Its purpose is to bring banking to people who never had it, so more customers means more deposits, which means more loans, which brings in more interest, which funds more growth.

Does drip selling mean the promoter wants to stay involved?

Yes. Drip selling signals the promoter is staying involved, not fleeing. The chairman said there is sufficient time and no plans for bulk offloading in one go, suggesting a patient, confident approach to meeting RBI's 26% rule by 2030.

Why does drip selling matter compared to a bulk sale?

A bulk sale floods the market with shares, pushing the price down. Drip selling lets the market absorb small amounts gradually, protecting the share price. The chairman said there are no plans for bulk offloading, and that there is sufficient time to comply with the RBI's 26% requirement by 2030.

What does a falling share price mean for the promoter's selling plan?

Bandhan Bank's stock has fallen 60.67% from its 2018 listing price of ₹477.20, trading at ₹187.70 as of late September 2026, with a 52-week low of ₹134.25. Each open-market sale now fetches far less than earlier sales would have, so the promoter must offload more shares to bridge the same percentage gap. Our read: the drip approach protects the price, but a falling price slows the progress toward the 26% target, so sales may stretch closer to the 2030 deadline. [cite: e2, e3, e16]

Can the promoter sell enough shares without crashing the stock price?

The promoter needs to cut from 37.54% to 26% by 2030, and it has been selling on the open market with no buyer pre-arranged. The stock trades at ₹187.70, down 60.67% from its listing price, and has fallen to a 52-week low of ₹134.25. With the drip approach, each sale adds public float for mutual funds, insurance companies, and foreign portfolio investors to absorb. Our read: aggressive selling would drive the price lower, so the pace will stay slow and spread across several years. [cite: e2, e3, e9, e15, e16]

What stops the promoter from just selling all shares before the deadline?

The promoter cannot sell everything because RBI licensing rules set 26% as the floor for promoter shareholding, not zero. The parent company, Bandhan Financial Services, also holds stakes in other businesses: about 60% of Bandhan AMC and 97% of Bandhan Life Insurance, which it must keep managing even after Bank shares are sold. The 26% floor keeps the promoter anchored to the bank, so the stake reduction is a trim, not an exit. [cite: e16, e9]

Why did the stake rise before it started falling?

The stake rose to 39.74% by end-2025 because the promoter never sold shares until then; under RBI rules reducing to 26% by 2030, sales began only after, trimming it to 37.54% by end-June 2026.

Who buys the shares when the promoter sells on the open market?

When Bandhan Financial Services sells its holdings on the open market, the buyers are typically institutional investors like mutual funds, insurance companies, and foreign portfolio investors, as well as retail investors. As of 2025, public shareholders held about 60% of the bank, with mutual funds at 8.96% and foreign portfolio investors at 18.73%. Each sale increases the public float, which can make trading easier. The shares are sold at prevailing market prices, with no specific buyer pre-arranged. [cite: e9, e15]

Where does the money from these sales go?

We could not find a reliable answer to this yet.

Does the stock split affect how fast the promoter can sell?

A stock split divides each ₹10 share into five ₹2 shares, increasing the number of shares but not the total value. It does not change the percentage stake the promoter must reduce, but it can make the stock more affordable to retail investors, potentially broadening demand. The split is proposed for shareholder approval on September 22, 2026, and is separate from the stake reduction plan. Its effect on selling speed is indirect, as it may improve market liquidity. [cite: e16]

How will the stake get from 37.5% to 26%?

The promoter will sell shares in small batches on the open market, not in one big block. It has already trimmed its stake from 39.74% at end-2025 to 37.54% by end-June 2026, and chairman Chandra Shekhar Ghosh says there's 'sufficient time' to reach the RBI's 26% target by 2030. Drip-selling avoids flooding the market and depressing the share price.

Who set the 26% limit and why?

The Reserve Bank of India set the 26% limit when it granted Bandhan Bank its banking licence in 2015, as part of ownership rules to prevent any single promoter from having unchecked control over a bank. The bank must comply with this licensing condition by 2030.

Why did the RBI set a 26% floor for the promoter?

The licensing rules say a promoter should hold at least 26% but not more than 40% once a bank is up and running, and the regulator wants a strong, committed owner rather than a scattered one. The floor keeps the promoter accountable and financially invested in the bank's health. In Bandhan's case, the promoter has always been above the cap and must now trim down to the floor by 2030, likely through the slow open-market sales already underway. (e7, e5)

What prevents the promoter from just selling the shares to one buyer?

A bulk sale to a single buyer would likely flood the market with shares and depress the price, which is why the chairman says there are no plans for a one-time offload. The promoter has been trimming in small open-market batches, reducing its stake from 39.74% at end-2025 to 37.54% by June 2026. This drip approach spreads the selling pressure over time. The stock already trades at ₹187.70, down 60.67% from its 2018 listing price, so a large sale could push it lower. (e2, e3, e16)

Does a smaller promoter stake hand more control to other shareholders?

Not directly. The promoter is required to hold at least 26% under the RBI's licensing rules, so even after the reduction it remains the largest single owner, with about a quarter of the bank. Other holders include mutual funds, foreign portfolio investors and the general public, but their stakes are not coordinated, so control stays with the promoter. A lower stake does, however, increase the public float, which can make the stock easier to buy and sell. (e7, e9, e15)

Could the promoter end up selling below the required 26% floor?

The RBI's rules set 26% as the minimum promoter holding, so the promoter is not expected to go below it by 2030. The chairman has said the plan is gradual dilution to meet the deadline, not a full exit. However, the promoter also holds large stakes in other group companies: 59.98% of Bandhan AMC and 97.16% of Bandhan Life Insurance as of March 2026. Those are separate holdings not covered by the bank's licensing terms, so the 26% floor applies only to the bank itself. (e16) Our read: the promoter will stop at 26% for the bank, but its broader group ownership stays untouched.

How does the bank's reliance on the promoter's insurance and AMC businesses change as the stake falls?

The bank sells insurance products as third-party offerings, and its own group's Bandhan Life Insurance contributed only ₹43.87 crore in commission in FY 2024-25, a small share of the total. The promoter's stake in Bandhan Life Insurance is 97.16% and in the AMC is 59.98%, both held outside the bank's licensing rules. Those holdings stay intact when the bank stake drops to 26%. So the bank keeps distributing group products, but a smaller bank stake does not loosen the group's control over those ventures. Our read: the promoter's other businesses remain the real prize, and the bank sale is purely regulatory housekeeping.

What happens if the promoter misses the 2030 deadline?

The evidence names no penalty for missing the deadline, but the RBI's licensing powers are the enforcement tool. The guidelines that set the 26% floor also give the regulator authority to impose additional conditions, and the banking licence itself was granted by the RBI under these terms. Since the chairman has said there is sufficient time and the plan is gradual sales, the practical pressure is on the promoter to comply rather than on any automatic fine. Our read: compliance is driven by the risk of regulatory censure, not a listed punishment.

What does a stock split change for the promoter?

A stock split does not change what the promoter owns in percentage terms; it only divides each ₹10 share into five ₹2 shares. Its purpose is to make the share price look smaller and more attractive to retail investors, ahead of a possible public offering.

Would a smaller promoter stake hurt the bank's customers?

No customer-facing change accompanies the stake sale. A secondary-market sale transfers shares from the promoter to other investors, but it does not alter deposit balances, loan contracts, EMIs, or access to services. The stated reason for the reduction is a regulatory deadline: the RBI requires the promoter to lower its holding from 37.54% to 26% by 2030 under the bank's 2015 licensing terms. Reaching 26% still leaves the promoter as a substantial owner, not a departing one. (e15, e7, e5)

How fast is 2 percentage points in six months?

It is a slow drip, roughly one third of a percentage point per month. The stake fell from 39.74% at end 2025 to 37.54% by end June 2026, about 2.2 points in six months, through small open market sales.