Bandhan Bank Shares Plummet 9% As CEO Chandra Shekhar Ghosh Announces Departure

Bandhan Bank's stock experienced a sharp decline of 9 per cent to Rs 179.55 on the BSE. Similarly, at the National Stock Exchange, the lender's shares tumbled by 9.17 per cent to Rs 179.25

Bandhan Bank shares recouped some of the losses and were trading at Rs 185.45 on the BSE, marking a decrease of 6.05 per cent. ( Image Source :Getty )

Bandhan Bank witnessed a major downturn in its stock performance on Monday, with shares plunging over 9 per cent. This drop followed the announcement that Chandra Shekhar Ghosh, the founder, managing director, and CEO of the private sector lender, will be stepping down from his position upon the completion of his tenure.

The stock of Bandhan Bank experienced a sharp decline of 9 per cent to Rs 179.55 on the BSE. Similarly, at the National Stock Exchange (NSE), the company's shares tumbled by 9.17 per cent to Rs 179.25.

As of 2:45 pm, Bandhan Bank shares recouped some of the losses and were trading at Rs 185.45 on the BSE, marking a decrease of 6.05 per cent.

Ghosh's retirement from the bank's MD and CEO role is set to take effect on July 9, 2024, as per a regulatory filing made by the bank on Friday.

"After leading the bank for almost a decade, including three consecutive tenures (9 years) as MD & CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level," Ghosh expressed in a letter addressed to the board.

Regulations set by the Reserve Bank of India (RBI) dictate that the tenure of MD and CEO of private banks cannot exceed 15 years.

The departure of Ghosh echoes a trend seen last year when Uday Kotak, founder MD and CEO of Kotak Mahindra Bank, stepped down from his position after nearly two decades of steering the bank.

Established on August 23, 2015, Bandhan Bank emerged as the first microfinance institution from the Eastern region to transform into a universal bank. Its journey included a successful listing on the stock exchanges in 2018 and the acquisition of Gruh Finance in 2019, aimed at expanding its reach in providing affordable banking solutions to home buyers.