We present an updated study of the penguin induced transition b --> s gamma in the minimal N = 1 supersymmetric extension of the Standard Model with radiative breaking of the electroweak group. We include the effects of one-loop corrections to the Higgs potential and scalar masses, and perform a detailed analysis of the implications of the recently advocated relation \B\ greater than or equal to 2 for the bilinear SUSY soft breaking parameter in grand unified theories. We show that the present upper and lower experimental limits on the inclusive decay sharply constrain the parameter space of the model for a wide range of tan beta values.