Kolkata, Feb 26 (PTI) The Reserve Bank of India has approved a proposal by SBI Mutual Fund to acquire an aggregate holding of up to 9.99 per cent in Bandhan Bank, according to a regulatory filing on Thursday.

Bandhan Bank informed stock exchanges that the RBI, through a letter dated February 25, 2026, accorded its approval to the fund house to acquire up to 9.99 per cent of the paid-up share capital or voting rights in the lender.

The approval is subject to compliance with the provisions of the Banking Regulation Act, 1949, the Reserve Bank of India (Commercial Banks '“ Acquisition and Holding of Shares or Voting Rights) Directions, 2025 dated November 28, 2025, as amended from time to time, the Foreign Exchange Management Act, 1999, and regulations issued by the Securities and Exchange Board of India, among other applicable statutes and guidelines, the bank said.

The RBI has stipulated that if the applicant fails to acquire the major shareholding within one year from the date of its letter, the approval will stand cancelled, the filing said.

It has also directed that the aggregate holding of SBI Mutual Fund in Bandhan Bank should not exceed 9.99 per cent of the paid-up share capital or voting rights of the bank at any time.

Further, if the fund's aggregate holding falls below 5 per cent at any point, prior approval of the RBI would be required to increase it to 5 per cent or more, the filing added.

Shares of Bandhan Bank closed 1.77 per cent higher at Rs 186.11 at NSE on Thursday. PTI BSM NN

Regulatory approval for stake acquisition with holding cap and time bound conditions, and prior approval required for increases. RBI approved SBI Mutual Fund's acquisition of up to 9.99 per cent of Bandhan Bank's paid-up share capital or voting rights, subject to compliance with the Banking Regulation Act, 1949, RBI Directions 2025, FEMA, and SEBI regulations. The approval expires if the specified major shareholding is not acquired within one year, the aggregate holding must not exceed the approved cap at any time, and any increase to or beyond 5 per cent after falling below that level requires prior RBI approval.