Bandhan Bank MD Ghosh asks staff not to worry over his resignation

Bandhan Bank’s managing director (MD) and chief executive officer (CEO) Chandra Shekhar Ghosh, who has decided to step down, on Wednesday said the bank will need at least three months to identify his successor.

He has also written to his employees, asking them “not to worry” over his surprise decision.

“Whatever, our experience in the earlier selections, when we selected two executive directors on the basis of that experience we need a minimum three months of time for selection of candidates and then it will go to RBI and then whatever is the time taken by RBI for approval,” Ghosh said.

When asked if there will be an interim CEO, he said the board will take necessary steps in the first week of July. Ghosh also clarified that there has been no communication from the regulator on the issue and the decision to step down was “voluntary”.

“In the life of any organisation, such transitions are normal events. There is no need for worry or apprehension. Indeed, it would be a great reward for me if you work harder and collectively, take Bandhan Bank to further heights of excellence,” Ghosh said in a communication to the exchanges.

The copy of the letter has been reviewed by Business Standard.

Last week, the bank informed the exchanges that Ghosh will retire after his current term ends on 9 July, 2024. The decision comes even after the Bandhan board approved his extension for three years for November last year.

Sources said the new CEO could come from outside. The bank has two executive directors – Rajinder Kumar Babbar and Ratan Kumar Kesh — but both are relatively new in the bank. Babbar received approval from RBI in January 2024 while Ratan Kumar Kesh received RBI approval in March 2023.

The bank had also appointed Rajeev Mantri as the new CFO in February 2024.

In the letter, Ghosh said he will ensure transition according to the succession framework of the bank.

“I continue to remain your MD & CEO till July 9, 2024 after ensuring transition as per the bank’s succession framework. Even after that, being in the strategic Bandhan Group level, I will always be available for any advice, whenever required by the Bank,” he said.

Analysts have turned cautious following Ghosh’s decision to step down.

“We remain watchful of the management transition and the bank’s execution capability as it focuses on continued diversification of loan book while improvement in asset quality is expected to drive earnings,” broking firm Motial Oswal said in a report.

First Published: Apr 10 2024 | 9:28 PM IST