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 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 current three-year term is ending on July 9.
On November 24, 2023, the bank’s board approved another three-year term for Ghosh as MD and CEO. The board’s recommendation is pending with RBI though the matter appears to have become moot, following Ghosh’s decision to step down at the end of his current tenure.
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Post retirement as CEO, Ghosh will take up what he termed as 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 Bandhan Bank.
Search for new CEO
Further, the bank has set up an internal search committee to identify a new chief, Ghosh said. The search committee will identify the new CEO candidate and will submit its report soon, said Ghosh.
Ghosh, who is also the founder of Bandhan Bank, 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 now 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.
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“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 5, shares of Bandhan Bank closed 0.35 percent lower at Rs 197.40 on BSE.
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