Bandhan Bank's Founder Ghosh To Step Down From Board Upon Retirement

Bandhan Bank's founder and managing director, Chandrashekhar Ghosh, announced on Monday that he will not continue on the bank's board in a non-executive capacity after his retirement on 9 July. Ghosh clarified to analysts and investors that the board will initiate the process of selecting his successor, with expectations of finalising candidate names by July. He emphasised that his resignation was voluntary, with no involvement from the Reserve Bank of India (RBI).

In the event of delayed approval from the RBI for the new CEO, the board may consider appointing an interim chief executive officer post Ghosh's tenure. Ghosh assured stakeholders of a smooth transition, stating, "The bank is ready to take the next leap of growth with capable leadership."

Ghosh's retirement follows the board's approval of his re-appointment for three more years in November last year. He explained that during this period, the bank underwent significant IT transformation and stabilising it was crucial. Addressing recent reports of a forensic audit on a portion of Bandhan Bank’s loan book, Ghosh clarified that the audit's timeline extends for another month and is unrelated to his retirement decision.

Last week, Bandhan Bank formally announced Ghosh's retirement after his decade-long tenure as CEO. In his resignation letter, Ghosh expressed his intention to assume a broader strategic role post-retirement, although specifics regarding his future role remain undecided.

Over the past year, Bandhan Bank has witnessed several changes in senior management, including new appointments to key positions such as executive directors, chief compliance officer, and chief information officer. The recent additions of Rajinder Kumar Babbar as the second executive director and Rajeev Mantri as chief financial officer reflect the bank's ongoing efforts to strengthen its leadership team.