SBI Mutual Fund Gets RBI Nod to Acquire Up to 9.99% in Bandhan Bank

The Reserve Bank of India (RBI) has approved a proposal by SBI Mutual Fund to acquire an aggregate holding of up to 9.99% in Bandhan Bank, according to a regulatory filing by the lender. The approval was granted through an official communication dated February 25, 2026.

The move allows the fund house to increase its investment in the bank’s paid-up share capital or voting rights, strengthening institutional participation in the lender.

Regulatory Conditions and Compliance Framework

The RBI’s approval comes with several regulatory conditions. The acquisition must comply with provisions under the Banking Regulation Act, 1949, the RBI’s Commercial Banks’ Acquisition and Holding of Shares or Voting Rights Directions, 2025, as well as applicable rules under the Foreign Exchange Management Act (FEMA) and SEBI regulations.

Additionally, the central bank clarified that SBI Mutual Fund must complete the acquisition within one year from the approval date. Failure to do so will automatically cancel the permission granted.

Shareholding Limits and Monitoring

The RBI has capped SBI Mutual Fund’s aggregate holding at 9.99% of Bandhan Bank’s paid-up share capital or voting rights at all times. Furthermore, if the fund’s stake falls below 5%, it will need fresh regulatory approval before increasing its holding back to or above that level.

These safeguards are aimed at ensuring regulatory oversight and maintaining stability in shareholding structures within the banking sector.

Market Reaction

Following the announcement, Bandhan Bank share price reacted positively, closing 1.77% higher at ₹186.11 on the NSE on Thursday. 

Also Read: RBI Approves SBI Mutual Fund to Acquire Up To 10% Stake in RBL Bank!

Conclusion

The RBI’s approval marks a significant development for Bandhan Bank, potentially enhancing institutional ownership and investor confidence. With clear regulatory conditions in place, the proposed stake acquisition by SBI Mutual Fund could support the bank’s growth outlook while reinforcing governance and market stability.

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