RBI Approves SBI Mutual Fund's Plan to Pick 9.99% Stake in Bandhan Bank

SBI Mutual Fund has received approval from the Reserve Bank of India to acquire an aggregate holding of up to 9.99% in Bandhan Bank, as disclosed in a filing on February 25, 2026. 

Regulatory Approval Details 

The RBI letter dated February 25, 2026, confirms that SBI Mutual Fund may purchase up to 9.99% of the paid‑up share capital or voting rights of Bandhan Bank. The approval is conditioned on compliance with the Banking Regulation Act 1949, the RBI Directions on commercial bank share acquisition 2025, the Foreign Exchange Management Act 1999 and SEBI regulations. 

Time Limits and Holding Constraints 

The fund must complete the acquisition within one year of the RBI letter; otherwise the approval will be cancelled. The aggregate holding must never exceed 9.99% of the bank’s paid‑up share capital.  

If the holding falls below 5% at any time, a fresh RBI approval will be required before increasing it to 5% or more. 

Read More: SEBI to Examine Brokers’ Plea on RBI’s New Funding Norms! 

Impact on Bandhan Bank Share Price 

Following the announcement, Bandhan Bank shares closed 1.77% higher at ₹186.11 on the NSE on Thursday. The price movement reflects market reaction to the regulatory clearance. 

Compliance Framework 

The transaction will be monitored to ensure adherence to the Banking Regulation Act, the 2025 RBI Directions and applicable foreign exchange and securities regulations. All filings have been made with the NSE and BSE under SEBI Regulation 30. 

Conclusion 

The RBI approval enables SBI Mutual Fund to acquire up to 9.99% of Bandhan Bank, with specific time frames and holding limits stipulated. The regulatory conditions aim to maintain appropriate shareholding levels and compliance with banking and securities law. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.