Private sector lender Bandhan Bank‘s founder, managing director and CEO Chandra Shekhar Ghosh has decided to demit office after the completion of his tenure.
Ghosh will retire from the services of the bank as MD and CEO upon completion of his current tenure on July 9, 2024, the bank said in a regulatory filing.
“After leading the bank for almost a decade, including three consecutive tenures (9 years) as MD & CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level,” Ghosh said in a letter addressed to the board.
Hence, he has decided to retire from the services of Bandhan Bank at the end of his current tenure as MD and CEO.
“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,” it said.
As per the RBI guidelines, the tenure of MD and CEO of private banks cannot be more than 15 years.
Promoters or major shareholders, however, cannot hold these posts for more than 12 years, but the RBI can choose to give them a three-year extension under extraordinary circumstances.
The Reserve Bank issued in-principle approval to only two entities, Bandhan Bank and IDFC Ltd, on April 2, 2014, to set up a universal bank.
Bandhan Bank was launched on August 23, 2015, with 501 branches and 50 ATMs spread across 24 states.
It is the first-ever microfinance institution to become a universal bank from the Eastern region.
In 2018, Bandhan Bank was successfully listed on the bourses. In 2019, the acquisition of Gruh Finance took place to provide more affordable banking solutions to home buyers.
Observing that the journey of the bank has not been without challenges, Ghosh in the letter said, “We successfully contended and surmounted the challenges posed by demonetisation in 2016, GST introduction in 2017, disruptions caused by cyclones Fani in 2019 and Amphan in 2020, socio-political challenges in a region where we had a deep presence in 2021, and eventually the terrible pandemic.”
Notwithstanding the challenges, in almost nine years, Bandhan Bank has garnered Rs 1.35 lakh crore as deposits, and advances stand at Rs 1.28 lakh crore as of March 31, 2024, he said, adding that year-on-year growth has been impressive.
Last year, Uday Kotak, Founder MD and CEO of Kotak Mahindra Bank, stepped down from the post effective September 1.
Kotak steered the bank for almost two decades.
Edited by Swetha Kannan
