MUMBAI
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Chandra Shekhar Ghosh, Bandhan Financial institution’s founder and managing director and chief government officer, has stated he won’t be a part of the financial institution’s board even in a non-executive position after he retires on 9 July.
Chatting with analysts and traders in an early morning name on Monday, Ghosh clarified that the board will begin the method of discovering his successor and expects the names of candidates to be finalized by July. The board might even have a look at appointing an interim CEO publish his tenure, if the Reserve Financial institution of India approval for the brand new CEO doesn’t are available by then.
“The financial institution is able to take the following leap of development with succesful management. I can guarantee you on behalf of the board that will probably be a easy transition,” he stated. “By July first week, the board will resolve whether or not there’s a want for an interim CEO.”
Final week, Bandhan Financial institution had knowledgeable the inventory exchanges that Ghosh has introduced his resolution to retire from the financial institution after having served because the CEO for almost 10 years. In his resignation letter, Ghosh stated that he was seeking to assume a broader strategic position after stepping down. Nonetheless, Ghosh didn’t specify what position he would assume, saying {that a} ultimate name will probably be taken after 9 July.
Ghosh’s retirement comes after the board had authorised his re-appointment for 3 extra years final November. Explaining the rationale behind the transfer, Ghosh clarified that it was a voluntary resolution, and that RBI had no position to play.
“Enterprise momentum has change into good. In October we had undertaken the largest transformation of IT within the core banking system. I needed to stabilize it. When in November 2023, the board determined to resume my appointment, I could not say something. That point was essential for the IT transformation,” he stated.
Mint had reported final December that big-four accounting agency EY was conducting a forensic audit on a portion of Bandhan Financial institution’s mortgage guide that’s backed by authorities ensures.
In the course of the name, the financial institution’s administration clarified that the audit will take yet another month and has no hyperlink to Ghosh’s resolution to retire.
Bandhan Financial institution has seen a number of modifications in senior administration over the previous one 12 months. The financial institution appointed Ratan Kumar Kesh, who was head of retail operations at Axis Financial institution earlier, as government director in March final 12 months, adopted by a brand new chief info officer (Pinaki Halder, who was a part of the enterprise intelligence unit at Axis Financial institution).
This March, the financial institution appointed Rajinder Kumar Babbar, who was group head – transportation, infrastructure and tractor finance group at HDFC Financial institution, because the second government director. And Rajeev Mantri, who was CFO of Citi India, was appointed Bandhan Financial institution’s chief monetary officer.
Brokerages like Jefferies have downgraded the inventory following the information of Ghosh’s retirement. It stated that uncertainty might result in slower development and better credit score value.
“Given the uncertainty, we’re decreasing our development outlook and credit score value estimates for FY25-26, driving our EPS down by about 10-14%. We additionally see valuations staying below overhang from such uncertainty. We check with an identical occasion at RBL Financial institution the place the CEO had abruptly left, adopted by interim CEO appointment of ED, and eventually appointment of exterior CEO,” stated Jefferies in its report.
Shares of Bandhan Financial institution fell greater than 6% in commerce on Monday to shut at ₹184.95 on BSE.
Supply: Live Mint