Bandhan Bank’s shares have experienced a significant increase on Friday, rising by over 9% on the Bombay Stock Exchange (BSE).
This jump in share price is linked to a decision made by the Reserve Bank of India (RBI), which approved the appointment of Partha Pratim Sengupta as the new Managing Director (MD) and Chief Executive Officer (CEO) of Bandhan Bank.
On Friday, the shares opened at Rs 200.20. They quickly climbed to a peak of Rs 205.55, representing a gain of 9.48%. By 10:15 AM, the shares were trading at Rs 204.50.
Appointment of New MD and CEO
The RBI has approved the appointment of Partha Pratim Sengupta as MD and CEO of Bandhan Bank for a three-year term.
The bank announced this in a notice to the stock exchange on Thursday, stating that Sengupta’s term will begin from the date he takes charge.
The RBI had pre-approved his appointment in a letter dated October 8, 2024.
Sengupta will succeed Chandrashekhar Ghosh, the bank’s founding MD and CEO, who resigned on July 9.
Currently, Ratan Kesh, an executive director at the bank, is serving as the interim MD and CEO.
Sengupta has previously been the MD and CEO of Indian Overseas Bank and has extensive experience in retail and corporate banking.
Positive Outlook from Analysts
Brokerage firm Jefferies has given a “buy” recommendation for Bandhan Bank’s shares, setting a target price of Rs 240.
The firm views the appointment of the new MD and CEO as a positive development for the bank.
