Chandra Shekhar Ghosh’s term as MD and CEO of Bandhan Bank comes to an end
Chandra Shekhar Ghosh, Managing Director and CEO, Bandhan Bank
Chandra Shekhar Ghosh on Tuesday completed his nearly nine-year tenure as managing director and chief executive officer (MD & CEO) of Bandhan Bank.
In April, the founder of the Kolkata-based lender announced he would step down to take on a broader strategic role at Bandhan Financial Holdings, the bank’s holding company.
Ghosh’s sudden departure came as a surprise to many as the bank’s board had already approved an extension of his term till 2027 in November last year, subject to regulatory approval.
While no succession plan was in place, the bank has appointed Ratan Kumar Kesh as interim MD & CEO for three months, starting July 10. A leadership consultancy has been appointed to search for a successor to Ghosh.
In 2001, Ghosh founded Bandhan as a non-profit organisation to provide small loans to the underprivileged and help them in their entrepreneurial journey. It became a non-banking financial company in 2006 and India’s first microfinance institution to transform into a universal bank in August 2015.
Ghosh’s tenure as MD & CEO was not without its challenges, including the IL&FS crisis in 2018, a devastating cyclone in 2019 and the microfinance crisis in Assam in 2020. Later, it was the Covid-19 pandemic that severely affected the bank’s asset quality and increased its distressed assets.
However, Bandhan Bank under Ghosh acquired Gruh Finance from erstwhile HDFC in an all-stock deal, which saw the lender’s share in unsecured microfinance loans fall.
Ghosh’s exit brings new challenges for the bank, including finding a credible replacement and managing investor reactions. Bandhan Bank’s market capitalization has fallen 47 percent in the past three years.
First print: 09 Jul 2024 | 21:18 IST