Chandra Shekhar Ghosh, founder of Bandhan and MD and CEO of Bandhan Bank will retire from his post at the completion of his current tenure on July 9, 2024.
The bank's board on Friday informed the stock exchanges that it has taken on record a letter from Ghosh stating his desire to step down from the services of the bank as MD and CEO, a post which he assumed charge since July 10, 2015, on completion of tenure.
Earlier, the RBI had granted an approval of re-appointment of Ghosh as the MD and CEO of the bank for a period of 3 years effective from July 10, 2021, according to a previous stock exchange disclosure from the bank.
Incidentally the bank's board had approved Ghosh's re-appointment as MD and CEO for a period of 3 years from July 10, 2024 in November 2023, as per stock exchange disclosure. RBI approval of the same was awaited, which typically comes a month ahead of the beginning of the next tenure.
"After leading the bank for almost a decade including three consecutive tenure as MD and CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level. Hence, I have decided to retire from the services of Bandhan Bank at the end of my current tenure as MD and CEO, i.e, on July 9, 2024," Ghosh said in his letter.
"I sincerely request the board to accept my decision. I am grateful to the board for continued support and advice over the years, which has been a great source of strength," he said.
Ghosh had set up Bandhan in 2021 as an NGO with an objective of women empowerment and poverty alleviation. In 2006, the Bandhan acquired an NBFC license and subsequently got the in-principle approval from RBI for setting up of the bank. Bandhan Bank was launched on August 23, 2015.
Ghosh had also played an instrumental role in the bank acquiring Gruh Finance in 2019 from HDFC Bank, a move that not only allowed the lender to diversify into housing finance but also meet the RBI's norms on lowering promoter shareholding in the bank.
Expanding horizons
Ghosh's decision to step down from the leadership of the bank comes at a time when Bandhan as a group is diversifying and expanding its horizons in the financial services space.
Bandhan Financial Holdings, which is the promoter company of Bandhan Bank and an NBFC Core Investment Company (CIC) has recently acquired Aegon Life, marking a foray into life insurance. The holding company along with a consortium of GIC and ChrysCapital had earlier acquired IDFC AMC, marking a foray into mutual fund business.
Senior management
The bank has been gradually filling up senior leadership roles in the past few months. Rajinder Babbar, who was roped in from HDFC Bank, has been designated as the ED and CBO. Last year, the bank designated Ratan Kumar Kesh as executive director. Rajeev Mantri, who had worked in Standard Chartered and Citi has also joined as CFO.
