Exclusive | Bandhan Bank hires Egon Zehnder to find a CEO to replace Ghosh

Bandhan Bank

Kolkata-headquartered Bandhan Bank has hired executive search firm Egon Zehnder to find a chief executive officer after Chandra Shekhar Ghosh retires from the corner office in the first week of July.

Egon Zehnder has begun work to identify candidates for the top job at the bank, said a person familiar with the development. “The bank has hired Egon Zehnder for the CEO search. It will take some time before the agency gives its shortlist to the bank,” the person said on condition of anonymity.

An email from Moneycontrol sent to Bandhan Bank wasn't answered till the time of filing this story.

Bandhan Bank said on April 5 that Ghosh would retire as MD and CEO after his current tenure ends on July 9.

Ghosh said his decision to step down from executive positions was  voluntary, and the bank had already begun the search for a new CEO. “Let me make it clear that this is a voluntary decision. I have been thinking of retirement for nearly a year and have a taken a call now,” he told Moneycontrol on April 8.

Read: Exclusive: Decision to step down voluntary, search committee set up to choose new CEO, says Bandhan Bank’s Ghosh

Ghosh’s comments came against the backdrop of speculation that the RBI has refused to grant him another term as CEO and MD. “There is no communication from the RBI on this,” Ghosh told Moneycontrol.

Ghosh’s decision to retire at this point has surprised many. Chandra Shekhar Ghosh, managing director and chief executive officer of Kolkata-based Bandhan Bank, said his decision to step down from executive positions after his tenure comes to an end in July 2024 is voluntary, and the bank has already begun the search for a new CEO. “Let me make it clear that this is a voluntary decision. I have been thinking of retirement for nearly a year and have a taken a call now,” Ghosh said.

Ghosh’s comments came against the backdrop of speculation that the RBI had refused to grant him another term as the bank chief. “There is no communication from the RBI on this,” he had told Moneycontrol.

After the retirement, he will take up a “strategic role” at the group holding company level, advising the group’s business verticals, he said. Bandhan Bank has insurance and mutual fund subsidiaries under the holding company. Bandhan Financial Holdings Ltd owns about 40 percent of the lender.

Ghosh, who is also the founder, has been one of the foremost proponents of financial inclusion in India. He has more than 30 years of experience in the microfinance and development terrain.

“After leading the bank for almost a decade, including three consecutive tenures as MD and CEO, I feel that the time has come for me to assume a larger strategic role at Bandhan group level. Hence, I have decided to retire from the services of Bandhan Bank at the end of my current tenure as MD and CEO, i.e. on July 9,” Ghosh said in his resignation letter attached to the regulatory filing.

“Notwithstanding the challenges, in almost nine years, Bandhan Bank has garnered Rs 1.35 lakh crore as deposits and advances stood at Rs 1.28 lakh crore as of March 31, 2024. Year-on-year growth has been impressive,” he added.

“The bank’s family has over 3 crore borrowers and depositors and over 75,000 employees now. I am indebted to each one of them who have reposed faith and trust in the bank under my leadership,” Ghosh said.

“I feel happy to leave behind a strong franchise in the hands of a capable leadership team, many of whom have partnered with me in building the organisation, brick by brick, sharing the same vision and values. Bandhan Bank will always enjoy a special place in my heart, and I will always be available for any help or advice the bank may need," he added.

On April 19, shares of Bandhan Bank were trading at 172.10, down 0.75 percent from their previous close on the BSE.