Bandhan Bank Share Price Soars After CEO Approval

Shares of Kolkata-based Bandhan Bank surged by 9% on Friday as they touched a high of Rs 204.90.

This increase followed the Reserve Bank of India's (RBI) approval of Partha Sengupta as the bank's new Managing Director and CEO.

Sengupta’s tenure is set to begin no later than November 10, 2024.

The RBI granted its approval on October 8, 2024.

This decision was based on a recommendation from Bandhan Bank’s Board of Directors.

Sengupta confirmed his acceptance of the role on October 9.

He is expected to resign from his current engagements to comply with the bank's terms.

Prior to this, the bank's board extended the term of interim head Ratan Kumar Kesh for another month. Kesh will remain in the position until November 10.

Sengupta is an experienced banker. He was the Deputy Managing Director and Chief Credit Officer at the State Bank of India. Later, he led Indian Overseas Bank (IOB) until December 2022.

Bandhan Bank has finished a forensic audit of its insurance claims with the National Credit Guarantee Trustee Company (NCGTC).

These claims involve the Credit Guarantee Fund for Micro Units (CGFMU) and the Emergency Credit Line Guarantee Scheme (ECLGS).

The bank announced that almost 85% of its insured portfolio has been repaid.

This portfolio totals around Rs 20,807 crore under the CGFMU scheme.

The remaining non-performing loans have been completely accounted for.

These loans have been written off as of March 31, 2024.

As of December 2022, Bandhan Bank has claimed and received Rs 916.61 crore from the National Credit Guarantee Trustee Company (NCGTC).