This paper presents a new enhanced stego block chaining (ESBC) technique for data hiding to address the bandwidth and transmission time issues of simple stego block chaining (SBC). In simple SBC data hiding method, the security of the hidden information is increased by increasing the number of stages, but the addition of each stage decreases the hiding capacity. This increases the size of the data needed to transmit the secret message and thus results in an increase in the required bandwidth and transmission time. The proposed ESBC technique addresses the bandwidth and transmission time issues of the simple SBC method. The output of the ESBC is a high quality stego image with peak signal-to-noise ratio above 40 dB and provides the same additional security as simple SBC but reduces the requirements of the bandwidth and transmission time by one half of that of the simple SBC and, thus, solves the hiding capacity issues of SBC for low bandwidth channels. Copyright (C) 2017 John Wiley & Sons, Ltd.