Bandhan Bank spurts after RBI nod for Partha Sengupta as MD & CEO

Bandhan Bank jumped 9.05% to Rs 204.75 after Reserve Bank of India (RBI) granted approval for the appointment of Partha Pratim Sengupta as managing director & chief executive officer (MD& CEO) of the bank.

He has been appointed to the post for three years from the date of taking charge, which should not be later than 10 November 2024.

The bank has received the acceptance of Sengupta on 9 October, 2024 and subsequent confirmation on 10 October, 2024 that he will step down from his other engagements in compliance with the terms and conditions of the prior approval for the proposed appointment as MD&CEO of the bank.

 

Sengupta has graduated in Physics Honours and is also a Certified Associate of Indian Institute of Bankers. He has received training in Leadership Development from Harvard Business School, IIM Calcutta, and ISB Hyderabad. Sengupta, who has four decades of experience in the banking industry, was groomed at SBI where he rose to the role of deputy managing director and chief credit officer. He took charge as the MD & CEO of Indian Overseas Bank (IOB) in July 2020. He retired from IOB in December 2022.

Menwhile, the bank said that forensic audit related to its insurance claims to the national credit guarantee trustee company (NCGTC) under the credit guarantee fund for micro units (CGFMU) and emergency credit line guarantee scheme (ECLGS) has been completed.

Bandhan Bank received Rs 314.68 crore from NCGTC for loan defaults under the CGFMU scheme. This payout is part of larger claim of Rs 1,231.29 crore assessed by NCGTC for defaults on loan disbursed in FY 2020-21.

In addition to the above, the bank had raised a claim of approx. Rs.508 crore to NCGTC under the ECLGS scheme so far, out of which an amount of Rs 161.13 crore had been settled by NCGTC. The remaining amount of approx. Rs.347 crore was kept on hold, pending the outcome of the forensic audit. As the audit is now completed, NCGTC has allowed to review and submit a fresh claim to NCGTC for its consideration, the bank stated in exchange filing.

The revised amount considers exclusion of certain accounts which have been adjusted from the claim, based on a conservative approach taken by the bank in view of certain operational gaps due to limitations imposed by Covid restrictions during FY 2020-21.

Bandhan Bank operates as a commercial bank. The Banks distribution network spans nearly 6,300 outlets. The Bank added 8 lakh customers, during the quarter and current customers stand at 3.44 crore customers. The Bank currently has more than 77,500 employees.

The banks net profit surged 47.48% to Rs 1,063.46 crore in Q1 FY25 as compared to Rs 721.05 crore recorded in Q1 FY24. Total income grew by 23.53% to Rs 6,063.35 crore in the first quarter of FY25 from Rs 4,908.02 crore posted in Q1 FY24.

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