Speaking to analysts and investors on Monday, Ghosh clarified that the board will start the process of finding his successor and expects the names of candidates to be finalized by July. Explaining the rationale behind this sudden decision to step down, Ghosh clarified that it was a voluntary decision and that the Reserve Bank of India (RBI) had no role to play in his resignation.

The board may even look at appointing an interim chief executive officer post his tenure, if the RBI’s approval for the new CEO does not come in by then.

Also Read: Bandhan Bank shares fall over 9% after MD & CEO resigns

“The bank is ready to take the next leap of growth with capable leadership. I can assure you on behalf of the board that it will be a smooth transition,” he said. “By July first week, the board will decide whether there is a need for an interim CEO,” he added.

Ghosh’s retirement comes at a time when the board had approved his re-appointment for three more years in November last year. 

Also Read: Bandhan Bank CEO Chandra Shekhar Ghosh to step down when tenure ends in July

“Business momentum has become good. In October, we had undertaken the biggest transformation of IT in the core banking system. I had to stabilize it. When in November 2023, the board decided to renew my appointment, I couldn’t say anything. That time was crucial for the IT transformation,” he said.

Mint had reported last December that big-four accounting firm EY is currently conducting a forensic audit on a portion of Bandhan Bank’s loan book that’s backed by government guarantees.

₹23,000 crore”>Also Read: EY conducting forensic audit of Bandhan Bank loans worth ₹23,000 crore

During the call, the bank’s management clarified that the audit will take one more month and has no linkage to Ghosh’s decision to retire.

Last week Bandhan Bank informed the stock exchanges that Ghosh has announced his decision to retire from the bank after having served the bank as the CEO for nearly 10 years. In his resignation letter, Ghosh said that he was looking to assume a broader strategic role after stepping down. In the call, however, he did not specify what his role would be and would be decided post 9 July.

Bandhan Bank had seen several changes in the senior management over the last one year. The bank appointed Ratan Kumar Kesh as the executive director in March last year, followed by a new chief compliance officer and chief information officer. In March this year, the bank appointed Rajinder Kumar Babbar as the second executive director and Rajeev Mantri as chief financial officer.

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Published: 08 Apr 2024, 12:12 PM IST