What's happening at Bandhan Bank: Jefferies' rating and target price cut, CEO steps down; stock falls 7%

Jefferies slashed the target price of the stock to ₹170 from ₹290, citing founder-CEO Chandra Shekhar Ghosh's resignation.

Published on: Apr 8, 2024, 09:52:11 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Brokerage firm Jefferies downgraded Bandhan Bank Ltd's rating to "underperform" from "buy" as the bank's managing director and chief executive officer Chandra Shekhar Ghosh said that he will quit on the completion of his tenure in early July.

Bandhan Bank MD and CEO Chandra Shekhar Ghosh speaks during a press meet. (PTI)

Jefferies's target price for Bandhan Bank

Jefferies slashed the target price of the stock to ₹170 from ₹290, citing the founder-CEO's resignation- a 14 percent downside from the stock's closing price of ₹197.40 on April 5. In the past six months, Bandhan Bank's shares have declined nearly 20 per cent.

What Jefferies said on Bandhan Bank's stock?

Jefferies expressed concerns about the uncertainty related to the appointment of a new CEO. The brokerage also said that there should be a smooth succession process considering that most senior management members are relatively new to the bank.

Why Chandra Shekhar Ghosh resigned from Bandhan Bank?

Chandra Shekhar Ghosh will retire on July 9 this year and has over 30 years of experience in microfinance and development. In his resignation letter attached with the regulatory filing, he said he would retire from Bandhan Bank to take on a broader strategic role within the group.

Read more: Bank Holidays April 2024: Banks to be closed for 5 days this week in some states. Details and state-wise list here

He added, “After leading the Bank for almost a decade including three consecutive tenure as MD & 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 & CEO, i.e. on July 09, 2024.”

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.