Bandhan Financial institution introduced that its Managing Director & Chief Govt Officer Chandra Shekhar Ghosh will retire from his place after finishing his present tenure on July 09, 2024. Ghosh, the founding father of Bandhan Financial institution, has performed a key function in selling monetary inclusion in India and boasts over 30 years of expertise in microfinance and improvement.
In the meantime, in keeping with a report by Hindu Businessline, the Bandhan Financial institution is more likely to see an exterior candidate in changing Ghosh as MD & CEO.
“Though there have been loads of recent fingers becoming a member of the financial institution at very senior ranges within the latest months, the financial institution remains to be believed to be looking for a CEO candidate,” an individual accustomed to the matter instructed Hindu Businessline.
Regardless of the latest appointment of no less than 5 new senior management executives, that is more likely to occur, the report stated.
“After main the Financial institution for nearly a decade together with three consecutive tenure as MD & CEO, I really feel that the time has now come for me to imagine a bigger strategic function at Bandhan group degree. Therefore, I’ve determined to retire from the companies of Bandhan Financial institution on the finish of my present tenure as MD & CEO, i.e. on July 09, 2024,” Ghosh stated in his resignation letter hooked up within the regulatory submitting.
“However the challenges, in virtually 9 years, Bandhan Financial institution has garnered Rs. 1.35 lakh crore as deposits and advances stand at Rs. 1.28 lakh crore as on March 31, 2024. Yr-on-year progress has been spectacular,” he added.
Ghosh’s resignation coincides with an ongoing forensic audit by the Nationwide Credit score Assure Trustee Firm (NCGTC), with the ultimate report anticipated to be launched quickly.
Bandhan Financial institution has confronted challenges with its asset high quality, particularly through the pandemic. The gross non-performing asset ratio surged from 1.48% in FY20 to six.81% in FY21, and additional to 7.02% within the December FY24 quarter. At the moment, loans totaling Rs 23,300 crore are beneath audit, together with Rs 20,800 crore lined beneath the Credit score Assure Fund for Micro Models (CGMFU) and Rs 2,500 crore lined beneath the Emergency Credit score Line Assure Scheme (ECLGS). These audits are investigating numerous lapses, equivalent to evergreening of loans and assessing potential inflation within the portfolio by means of fictitious prospects. This quantities to roughly 18% of the financial institution’s whole mortgage guide as of Q3 FY24.
Bandhan Financial institution’s shares closed barely decrease on April 5, down by 0.35% at Rs 197.40 per share on the BSE.
