Bandhan Bank shares surge 10% on RBI nod for Partha Sengupta as CEO

Shares of private lender Bandhan Bank rose over 10 per cent on Friday after the Reserve Bank of India approved the appointment of its new CEO, which analysts said would ensure management stability.

The Reserve Bank of India on Thursday approved the appointment of Partha Pratim Sengupta as CEO and managing director of the bank. He will replace Chandra Shekhar Ghosh, who retired in July.

Sengupta previously held leadership positions at the State Bank of India and was CEO and managing director at state-run Indian Overseas Bank between 2020 and 2022.

Bandhan Bank’s shares on the NSE rose as much as 10.52 per cent to ₹207.45, as of 11:50 am.

“Appointment of a PSU banker as CEO provides some stability to an organisation like Bandhan which has witnessed exits in the past year,” Macquarie analyst Suresh Ganapathy said in a note.

Separately, the bank said the National Credit Guarantee Trustee Company had completed an audit of loan claims filed by the lender under a guarantee scheme. Post the completion, the remaining claims payout to the bank stood at ₹3.15 billion.

The decision provides credibility to the bank, which may use the funds to build provisions for stress loans, adding to its capital base and earnings, Jefferies said in a note.

“We believe the conclusion of the audit, with a relatively clean chit for the bank, will be a breather for the street,” CLSA said.

Macquarie said it believes claims payout implies a 15 per cent upside to its estimate for the bank’s fiscal year 2025 profit, which is currently at ₹35 billion.

Bandhan Bank, which had seen high bad loan formation over the past two years, said its asset quality degraded with gross non-performing assets ratio rising to 4.23 per cent at the end of June from 3.84 per cent three months earlier.

Its shares have lost about 15 per cent so far this year, compared to about a 7 per cent rise in the broader Nifty bank index.