Bandhan Bank announced that its Managing Director & Chief Executive Officer Chandra Shekhar Ghosh will retire from his position after completing his current tenure on July 09, 2024. Ghosh, the founder of Bandhan Bank, has played a key role in promoting financial inclusion in India and boasts over 30 years of experience in microfinance and development.
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Meanwhile, according to a report by Hindu Businessline, the Bandhan Bank is likely to see an external candidate in replacing Ghosh as MD & CEO.
“Although there have been a lot of fresh hands joining the bank at very senior levels in the recent months, the bank is still believed to be searching for a CEO candidate,” a person familiar with the matter told Hindu Businessline.
Despite the recent appointment of at least five new senior leadership executives, this is likely to happen, the report said.
“After leading the Bank for almost a decade including three consecutive tenure as MD & CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level. Hence, I have decided to retire from the services of Bandhan Bank at the end of my current tenure as MD & CEO, i.e. on July 09, 2024,” Ghosh said in his resignation letter attached in the regulatory filing.
“Notwithstanding the challenges, in almost 9 years, Bandhan Bank has garnered Rs. 1.35 lakh crore as deposits and advances stand at Rs. 1.28 lakh crore as on March 31, 2024. Year-on-year growth has been impressive,” he added.
Ghosh’s resignation coincides with an ongoing forensic audit by the National Credit Guarantee Trustee Company (NCGTC), with the final report expected to be released soon.
Bandhan Bank has faced challenges with its asset quality, especially during the pandemic. The gross non-performing asset ratio surged from 1.48% in FY20 to 6.81% in FY21, and further to 7.02% in the December FY24 quarter. Currently, loans totaling Rs 23,300 crore are under audit, including Rs 20,800 crore covered under the Credit Guarantee Fund for Micro Units (CGMFU) and Rs 2,500 crore covered under the Emergency Credit Line Guarantee Scheme (ECLGS). These audits are investigating various lapses, such as evergreening of loans and assessing potential inflation in the portfolio through fictitious customers. This amounts to roughly 18% of the bank’s total loan book as of Q3 FY24.
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Bandhan Bank’s shares closed slightly lower on April 5, down by 0.35% at Rs 197.40 per share on the BSE.
