Shares of Bandhan Bank experienced a significant boost in Friday’s trading session, rising by an impressive 9.2% to reach ₹205 per share. This surge represents the highest share price since September 27, largely attributed to the Reserve Bank of India’s (RBI) approval of Partha Pratim Sengupta’s appointment as the new Managing Director (MD) and Chief Executive Officer (CEO) of the bank for a tenure of three years.
Background of Leadership Transition
The Board of Bandhan Bank had been actively searching for a new Managing Director and CEO following the resignation of Chandra Sekhar Ghosh, who stepped down on July 9. In the interim, Ratan Kesh, one of the executive directors, has been serving as the acting MD and CEO, ensuring the bank’s operations continued smoothly during the leadership transition.
Official Appointment and Acceptance
“The RBI, through its correspondence dated October 8, 2024, has approved the appointment of Mr. Partha Pratim Sengupta as MD & CEO of the Bank for three years, effective from the date he assumes charge,” the bank stated in a regulatory filing. Following this approval, Mr. Sengupta confirmed his acceptance on October 9, 2024, and reiterated on October 10, 2024, that he would resign from his other roles to comply with the regulations concerning his new position as MD & CEO.
Mr. Sengupta’s Professional Journey
Mr. Sengupta brings a wealth of experience to Bandhan Bank. From 2016 to 2018, he served as the Chief General Manager of the State Bank of India’s Kolkata Circle, overseeing operations in West Bengal, Sikkim, and the Andaman and Nicobar Islands. More recently, he held the position of MD and CEO at Indian Overseas Bank from 2020 until December 2022, during which he effectively steered the bank through challenging financial landscapes.
Financial Updates and Claims
In addition to the leadership news, Bandhan Bank has communicated significant financial updates. The National Credit Guarantee Trustee Company has finalized an audit concerning the loan claims filed by the bank under a government guarantee scheme. As of now, the residual claims payout to Bandhan Bank stands at ₹314 crore. This audit pertains to the loans extended under a government-backed program aimed at protecting lenders from defaults on microloans during the COVID-19 pandemic, supporting small borrowers in maintaining their financial obligations.
A Brief History of Bandhan Bank
Bandhan Bank commenced its operations on August 23, 2015, with an initial network of 501 branches and 50 ATMs across 24 states. It marked a significant achievement as the first microfinance institution from India’s eastern region to transition into a universal bank following the RBI’s in-principle approval on April 2, 2014.
Conclusion
The recent developments, including the leadership appointment of Mr. Partha Pratim Sengupta and the financial audit results, indicate promising growth and resilience for Bandhan Bank. As it moves forward under new leadership, investors and stakeholders will be keenly observing the bank’s strategies and performance in the coming quarters.
Disclaimer: The insights and opinions presented in this article come from individual analysts and do not reflect the official views of Mint. Investors are advised to consult certified professionals before making any investment decisions.
