As the RBI accepts the new MD and CEO and NCGTC to pay Rs 315 cr under the CGFMU claim, Bandhan Bank’s shares rises 10%.
The three-year tenure of Partha Pratim Sengupta is scheduled to start on November 10, 2024.
Following Partha Pratim Sengupta’s approval by the Reserve Bank of India (RBI) to assume the role of Managing Director and CEO of a private bank, shares of Bandhan Bank shot up more than seven percent in the morning session.
On October 9, 2024, Partha Pratim Sengupta accepted the role. On October 10, he said on October 10 that he will resign from his previous positions in accordance with the terms and circumstances set forth by the RBI. His tenure will start on November 10, 2024, and last for three years.
After receiving approval from the bank’s Nomination and Remuneration Committee, the appointment will be formalized.
Bandhan Bank shares were trading at Rs 200.8 a share at 9.30 am on the NSE, 7% more than the closing price of the previous session.
Furthermore, Bandhan Bank declared that a thorough forensic investigation of its claims made under the Credit Guarantee Fund for Micro Units (CGFMU) program has been finished by the National Credit Guarantee Trustee Company (NCGTC). The whole assessed payout as of March 31, 2024, is Rs 1,231.29 crore.
In December 2022, the bank had already collected Rs 916.61 crore. According to Bandhan Bank’s announcement, the total compensation as of March 2024, with this initial claim resolved, is Rs 314.68 crore.
With a target price of Rs 240 per share, international brokerage Jefferies kept its buy recommendation on Bandhan Bank, noting as a positive development Partha Sengupta’s appointment as Managing Director and CEO.
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