RBI penalizes Bandhan Bank ₹44.70 lakh for regulatory non-compliance

Bandhan Bank Limited has been penalized by the Reserve Bank of India (RBI) with a monetary penalty of ₹44.70 lakh. The penalty, issued via a letter dated August 29, 2025, follows an order dated August 26, 2025.

The penalty stems from contraventions of Section 10(1)(b)(ii) of the Banking Regulation Act, 1949 (BR Act), which accounts for ₹12.90 lakh of the total fine. Additionally, Bandhan Bank was fined ₹31.80 lakh for non-compliance with directions in paragraph 10 of the Annex to the RBI Circular dated September 14, 2020, regarding 'Automation of Income Recognition, Asset Classification and Provisioning processes in banks'.

Bandhan Bank has stated that this penalty does not have a material impact on its financial, operational, or other activities. The disclosure was made to both BSE Limited and National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.