RBI Appoints Director On Bandhan Bank Board
Bandhan Bank is in the midst of a leadership transition as its founder MD and CEO Chandra Shekhar Ghosh is set to retire on July 9.
The Reserve Bank of India on Monday appointed an additional director on the board of private sector lender Bandhan Bank Ltd.
In an exchange notice, the lender said that RBI had appointed Arun Kumar Singh, former chief general manager of the central bank on its board, effective June 24. The appointment is for a period of one year from the date of appointment.
Bandhan Bank is in the midst of a leadership transition as its founder MD and CEO Chandra Shekhar Ghosh is set to retire on July 9. The retirement was announced in April, after Ghosh had already served three tenures as the MD & CEO. In his letter to the board on April 5, Ghosh said that he would take on a more strategic role at the Bandhan group level.
A new candidate is yet to be appointed at Bandhan Bank, however, the lender is in the process of identifying a suitable successor. Bandhan Bank has appointed a leadership appointment firm to find a candidate for the role.
Apart from the succession issue, Bandhan Bank is also in the midst of a forensic audit of its government guaranteed loan portfolio. The National Credit Guarantee Trustee Company is conducting a forensic audit of Rs 23,300 crore worth of loan extended by Bandhan Bank.
The regulator typically appoints a nominee director on the board of a private sector bank when it is anticipating any operational issues. In December 2021, the RBI had appointed a director on the board of RBL Bank Ltd. after the sudden departure of its MD and CEO Vishwavir Ahuja. This was at a time when the bank was trying to appoint a new MD and CEO. The nominee director stayed on the board till December 2023.
In the past, the RBI has also appointed directors on the boards of Yes Bank Ltd. and Dhanlaxmi Bank Ltd., as part of its supervisory efforts.
