Bandhan Bank experienced a significant drop of 9% in its share value during the morning trade on April 8, following the news of Chief Executive Officer and Managing Director Chandra Shekhar Ghosh’s decision to step down.
At 9:36 am, Bandhan Bank’s shares were trading at Rs 183.95 on the NSE.
The bank confirmed that Ghosh would be stepping down upon the completion of his tenure in early July. In an exclusive interview with Moneycontrol, Ghosh stated that his resignation was voluntary, and the bank had already commenced the search for his replacement.
However, brokerage firm Jefferies expressed concerns about the uncertainty surrounding the appointment of a new CEO. It warned that this uncertainty could potentially lead to slower growth and higher credit costs. Jefferies underscored the importance of a well-planned succession strategy, especially noting that many senior executives at the bank were relatively new additions.
Following the unexpected resignation of Bandhan Bank’s CEO, Jefferies has significantly reduced its price target for the bank’s stock by over 41% to Rs 170. This adjustment reflects a potential downside of more than 14% from the stock’s previous close.
Despite the board’s approval of his reappointment as MD & CEO for another three years in November, Chandra Shekhar Ghosh, with over 30 years of experience in microfinance and development, is set to retire on July 9.
Ghosh’s resignation letter, included in the lender’s regulatory filing, indicates his intention to pursue a broader strategic role within the group.
Disclaimer: The opinions and investment insights provided are intended solely for informational purposes and should not be construed as financial advice. Bystox.in strongly advises users to consult certified financial experts or professionals before making any investment decisions. We emphasize the importance of conducting thorough research and seeking personalized guidance tailored to individual financial goals and circumstances. Please be aware that investing involves inherent risks, and past performance is not indicative of future results. Bystox.in does not assume any responsibility or liability for the accuracy, completeness, or reliability of the information provided. Users are encouraged to exercise caution and diligence in their investment endeavors. Remember, your financial well-being is paramount, and seeking expert advice is highly recommended.