Shares of Bandhan Bank fell 6.31 per cent on Monday on the BSE after the lender announced on Friday that the bank’s current MD and CEO Chandra Shekhar Ghosh would retire in July.

The bank’s scrips fell to Rs 184.95 on the BSE against a previous close of Rs 197.40. It had reached an intraday low of Rs 179.55, down over 9 per cent from the previous close.

Market analysts remained uncertain about a smooth succession and a full time replacement for the current MD and CEO within three months.

Jefferies attributed the retirement of the founder and CEO as a negative surprise and a “risk from execution and strategy perspectives”.

“Many among the top management team have been with the bank for less than 1-2 years. The bank has two EDs, Rajinder Kumar Babbar and Ratan Kumar Kesh and one among them could be appointed as interim CEO in case a permanent CEO isn’t appointed till July 9,” the report said.

“We believe till there is clarity on the CEO candidate the stock will underperform,” said Macquarie in a report.

Management optimistic

Chandra Shekhar Ghosh expressed confidence in the current management at an analyst call on Monday and said that the bank has appropriate business continuity plan in place. He said his decision to retire was made “voluntarily” and with “due consideration”.

“I am transitioning to a higher strategic role at the holding company level. In my new role, I will pursue a strategic responsibility where I plan to leverage my experience and insights to contribute to the overall growth,” he said.

The management also indicated that there is no relation of the retirement of the MD with the ongoing audit initiated at the behest of the National Credit Gurantee Trust Company. “The audit is going to take another one month or so to get concluded,” executive director and COO Ratan Kumar Kesh said.