Bandhan Bank tumbled 5.27% to Rs 187 after the bank informed that its managing director & chief executive officer Chandra Shekhar Ghosh would retire from the services of the bank upon completion of his current tenure on 09 July 2024.
The board of the bank took the resignation of Chandra Shekhar Ghosh on record on 05 April 2023.
Following this development, a foreign brokerage has reportedly downgraded the banks rating to "underperform" from "buy".
It has reportedly slashed the target price of the stock to Rs 170 from Rs 290 - a 14% downside from the stock's closing price of Rs 197.40 on 05 April 2024.
The brokerage has reportedly expressed concerns about the uncertainty related to the appointment of a new CEO. The brokerage also reportedly said that there should be a smooth succession process considering that most senior management members are relatively new to the bank.
Bandhan Bank operates as a commercial bank. The banking outlets as on 31 December 2022, stood at 5,723. The network consists of 1,250 branches, 4,473 banking units as against 1,176 branches and 4,450 banking units as on December 31, 2021.
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The Kolkata-based private lender reported a net profit of Rs 732.72 crore in Q3 FY24, steeply higher than Rs 290.57 crore recorded in Q3 FY23. Total income increased 7.6% to Rs 5,210.60 crore in the third quarter of FY24 from Rs 4,840.94 crore posted in Q3 FY23.
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