Bandhan Bank stock zooms 9% after RBI approves Partha Pratim Sengupta as MD and CEO | Stock Market News
Source: Live Mint
Shares of Bandhan Bank surged 9.2% in Friday’s intraday trade to ₹205 apiece, a level not seen since September 27, after the Reserve Bank of India (RBI) cleared the appointment of Partha Pratim Sengupta as Managing Director (MD) and Chief Executive Officer (CEO) of the bank for a period of three years.
The Board has been seeking a new Managing Director and Chief Executive Officer since Chandra Sekhar Ghosh stepped down on July 9. Currently, Ratan Kesh, one of the executive directors, is serving as the interim MD and CEO.
“The RBI, vide its letter dated October 8, 2024, has granted its prior approval for the appointment of Mr. Partha Pratim Sengupta as Managing Director & Chief Executive Officer (‘MD&CEO’) of the Bank, for a period of three years with effect from the date of taking charge,” the company said in a regulatory filing.
“The Bank has received the acceptance of Mr Sengupta on October 9, 2024, and subsequent confirmation on October 10, 2024, that he will step down from his other engagements in compliance with the terms and conditions of the prior approval for the proposed appointment as MD&CEO of the Bank,” Bandhan Bank added.
Between 2016 and 2018, Mr Sengupta served as Chief General Manager, SBI Kolkata Circle, which included the states of West Bengal and Sikkim and also the Union Territory of Andaman and Nicobar Islands.
In 2020, Mr. Sengupta was selected as Managing Director and Chief Executive Officer of Indian Overseas Bank and led the bank until December 2022.
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Bandhan Bank stated in a separate filing that the National Credit Guarantee Trustee Company had completed an audit of loan claims filed by the lender under a guarantee scheme and said the remaining claims payout to the bank stood at ₹314 crore.
The audit by the government agency was related to a set of loans the bank had given out as part of a government-backed scheme during the COVID-19 pandemic. The scheme was meant to ensure payments to lenders in the case of defaults on microloans by small borrowers.
On August 23, 2015, Bandhan Bank commenced operations with an initial network of 501 branches and 50 ATMs across 24 states, following the RBI’s in-principle approval granted on April 2, 2014, to establish a universal bank. Notably, it is the first microfinance institution from the eastern region to transition into a universal bank.
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