Shares of Bandhan Bank Ltd dipped as low as 9% in the early morning trade following MD and CEO Chandra Shekhar Ghosh’s resignation from the company. Ghosh resigned a few months ahead of the renewal of his tenure.
“The Board of Directors of Bandhan Bank Limited (‘the Bank’) at its meeting held today i.e. April 05, 2024, took on record the letter dated April 05, 2024, submitted by Mr. Chandra Shekhar Ghosh, Managing Director & Chief Executive Officer (‘MD&CEO’) of the Bank since July 10, 2015, informing that he would retire from the services of the Bank as the MD & CEO upon completion of his current tenure on July 09, 2024,” Bandhan Bank informs via an exchange filing.
In his resignation letter, Ghosh said he has decided to retire from the services of Bandhan Bank at the end of his current tenure as MD & CEO, i.e. on July 09, 2024.
After leading the bank for almost a decade, including three consecutive tenures as MD & CEO, Ghosh says the time has now come to assume a larger strategic role. “I sincerely request the Board to accept my decision. I am grateful to the Board for continued support and advice over the years which has been a great source of strength.”
He added that he felt happy to leave behind a strong franchise. “Bandhan Bank will always enjoy a special place in my heart, and I will always be available for any help or advice the Bank may need.”
Ghosh quit his stable job 23 years back and started his entrepreneurial journey with Bandhan in 2001 as an NGO. “I started with my savings, contributions from some relatives, and borrowings from moneylenders. Once the model was proven, financial institutions came forward to lend and support. In 2006, Bandhan acquired a Non-Banking Finance Company (NBFC) and named it Bandhan Financial Services Ltd (BFSL). BFSL moved on with microfinance activities, while the NGO continued with development work. It became the largest microfinance institution in the country in 2010. It was a matter of pride to see how Bandhan had positively changed the lives of women borrowers, turning them into successful entrepreneurs. The success stories of the borrowers, their confidence and empowerment, became the impetus for me to think bigger. In 2013, the Government of India announced guidelines for issuing fresh bank licenses. BFSL and I jointly applied for a banking license in July 2013,” Bandhan Bank CEO says in his letter to the board.
Bandhan Bank was launched on August 23, 2015, with 501 branches and 50 ATMs spread across 24 states. It became the first-ever microfinance institution to become a universal bank in India and the first private sector bank to be set up from Eastern India after Independence. In 2018, Bandhan Bank was listed on the bourses. In 2019, the bank acquired Gruh Finance to provide affordable banking solutions to home buyers.
Ghosh says notwithstanding the challenges, in almost 9 years, Bandhan Bank has garnered ₹1.35 lakh crore as deposits and advances stand at ₹1.28 lakh crore as of March 31, 2024.
The CEO says the bank is today one of the most successful private sector banks in India. “The Bank’s family has over 3 crore borrowers and depositors and over 75,000 employees now. I am indebted to each one of them who have reposed faith and trust in the Bank under my leadership.”
Bandhan Bank shares opened at ₹189.95, gap down, and hit the day’s low at ₹179.55, down 9%, on the BSE today. The lender’s shares are currently trading 32% down from its 52-week high touched on June 1, 2023. Its current m-cap stands at ₹29,835.16 crore. The bank’s Q3 FY23 revenue was recorded at ₹46,654.30 crore, up from ₹3,807.64 crore in the year-ago period. The net profit came in at ₹732.72 crore, more than double from ₹808.29 crore recorded in the year-ago period.
The article originally appeared on Fortune India.