new delhi bandhan bank has received rbi nod to reappoint chandra shekhar ghosh as its md and ceo for three years lower than the fiveyear tenure approved by the companys board in november last yearthe reserve bank of india vide its communicated dated june 8 2021 has granted approval for reappointment of chandra shekhar ghosh managing director chief executive officer md ceo of the bank for a period of three years with effect from july 10 2021 the lender said in a regulatory filing on tuesdayon november 2 2020 the board of the bank had approved reappointment of ghosh as the md and ceo for a period of five years with effect from july 10 2021 subject to approval of the rbi and shareholdersghoshs current term comes to an end on july 9 2021with 30 years of experience in microfinance and development ghosh had set up bandhan as an ngo in april 2001 and it was converted into an nbfc latersubsequently it was established as a universal bank in august 2015 after getting licence from the rbithe kolkataheadquartered lender earlier in september 2018 was barred by the rbi from expanding its branch network the rbi had also freezed ghoshs remuneration as the lender failed to comply with a licensing condition that required cutting down promoters stake to 40 per cent from close to 82 per cent within three years of commencing operationsthe restrictions on expansion were lifted in february 2020 by the rbi even as the bank was not in compliance with the licensing condition given the efforts made by the lender to comply with the guidelines it had reduced the promoters stake to 62 per cent by thenrbi had lifted the regulatory restriction on branch opening on the condition that the bank ensured that at least 25 per cent of the total number of banking outlets opened during a financial year were in unbanked rural centresthe curbs on ghoshs remuneration were lifted in midaugust 2020according to rbis bank licence norms a private sector banks promoter will need to pare holding to 40 per cent within three years 20 per cent within 10 years and to 15 per cent within 15 yearsbandhan had merged with mortgage lender hdfcs lowvalue home loan company gruh finance in order to reduce the promoter ownership to the 60 per cent level from the earlier 82 per centbandhan is the first bank in india which has been transformed from a microfinance institutionas of march 31 2021 the promoter and promoter group shareholding in bandhan bank stands reduced to 3999 per cent as per data on bsebandhan bank stock closed at rs 31645 apiece on bse down 114 per cent