The stock of private sector lender Bandhan Bank saw a sharp decline of nearly 9% at the opening bell today following the announcement of the retirement of its Managing Director and CEO, Chandra Shekhar Ghosh, effective July 9, 2024. Ghosh, who has led the bank since July 10, 2015, will step down after nearly nine years at the helm.
The bank’s board issued a statement acknowledging Ghosh’s personal decision to retire and indicated that an interim CEO may be appointed in the meantime. Additionally, the company revealed its strategic focus on the microfinance segment and plans to reduce its provisions moving forward.
As of 10:53 am, Bandhan Bank shares were trading down by 5.42% or Rs 10.70 at Rs 186.65 on the National Stock Exchange (NSE), having reached a low of Rs 179.25 per share earlier in the day.
In response to the news, global brokerage firm Jefferies downgraded Bandhan Bank’s stock rating to ‘underperform’ from the previous ‘buy’ rating and revised the target price downward to Rs 170 per share, compared to Rs 290 previously. The brokerage expressed surprise at Ghosh’s retirement announcement, particularly in light of the recent approval by the bank’s board to renew his term.
Stock Performance in last one year
In terms of stock performance, Bandhan Bank shares have shown negative returns across multiple time frames. Over the past month, the stock has dipped 2%, indicating selling pressure in the near term. The last six months have witnessed an even steeper decline, with a decrease of 24%, suggesting a strong downtrend.
Year-to-date, Bandhan Bank shares have dropped by 23%, undermining the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered a negative return of over 11% in the last twelve months.
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