Bandhan Bank - MD, CEO Ghosh’s Resignation Blurs Future Prospects; Stock ‘Under Review’ Now: ICICI Securities

ICICI Securities Report

The resignation of Chandra Shekhar Ghosh has come as a negative surprise as the Board had approved the re-appointment of Mr Ghosh as MD and CEO for three years in November 2023.

We reiterate that Mr Ghosh has been the founder and has been instrumental in the overall functioning of the bank, and therefore, his resignation could significantly alter overall growth and profitability of the bank.

We believe the timing of the resignation is unfortunate as the bank is still seeing elevated asset quality stress while the two executive directors are fairly new to the bank and there have been multiple senior exits in the last couple of years.

We have seen sharp negative stock price reaction in cases where there is not much clarity on management succession. We believe the stock price ahead could tread divergently versus underlying business or financial performance until more clarity emerges on MD&CEO succession.

We have put Bandhan Bank’s rating and target price under-review until further clarity. Our previous rating was Add and target price Rs 250, which stands suspended.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.