Bandhan Bank shares rise over 10 percent; RBI approved Partha Pratim Sengupta as CEO & MD
Bandhan Bank saw a tremendous jump on Friday. Shares of Bandhan Bank jumped more than 10 percent in early trade. The reason for this is a decision of the Reserve Bank of India (RBI), which solved the management problem of Bandhan Bank.
What is RBI’s decision
RBI approved the appointment of Partha Pratim Sengupta as a Managing Director and CEO of Bandhan Bank. This decision came after the stock market closed yesterday, which effects seen today. As soon market opened on Friday Bandhan Bank shares suddenly gets boost.
Bandhan Bank shares
Bandhan Bank shares opened with a gain at Rs 200.20 on BSE. From here upward trend continued and around 1 pm, Bandhan Bank shares were trading at Rs 206.81 with a jump of 10.18 percent.
Partha Pratim Sengupta Tenure
RBI has approved the proposal to appoint Partha Pratim Sengupta as the MD and CEO of Bandhan Bank for three years. According to Bandhan Bank, Sengupta’s three-year term will be counted from the date of assuming office. Sengupta will replace the bank’s founder MD and CEO Chandrashekhar Ghosh. Chandrashekhar left his post on July 9.
At present, the bank’s executive director Ratan Kesh is handling the work as interim MD and CEO. Sengupta has a lot of experience in retail and corporate banking. He has been the MD and CEO of the public sector Indian Overseas Bank.
Experts on Bandhan Bank Share
Brokerage firms have bullish stance on Bandhan Bank. Jefferies has also given buy rating to Bandhan Bank shares. Target price has also been increased to Rs 240. Jefferies says that the strong background of the company’s new CEO will be positive for the bank. It has also expressed hope of 15 percent ROE in the bank’s business. According to Jefferies, the bank’s financial performance will be good overall.
However, like most stocks in the banking sector, Bandhan Bank has also been sluggish for some time. In the last 6 months, Bandhan Bank has given a return of around 13 per cent. However, in the last one year, investors have got a negative return of 17 per cent from Bandhan Bank.
