Bandhan bank hopes director onboarding will strengthen transition
Bandhan Bank has expressed confidence that the onboarding of an additional director appointed by the Reserve Bank of India (RBI) will bolster its ongoing transition process as CEO Chandra Shekhar Ghosh prepares to retire next month.
“The transition within the bank has been progressing well, and the appointment of an additional director by the RBI will only strengthen this process,” a spokesperson for the Kolkata-headquartered bank told Moneycontrol. “The RBI has not highlighted any concerns to the bank in the context of the appointment of the additional director.”
The regulator has appointed Arun Kumar Singh, a retired chief general manager of the RBI, as an additional director on the Board of Bandhan Bank for a period of one year from June 24, 2024, to June 23, 2025, according to a report by Moneycontrol on June 25.
RBI Appoints Additional Director on Bandhan Bank Board
Bandhan Bank clarified that the appointment of the additional director is not intended to monitor the bank due to any operational concerns. “We categorically deny the claim suggesting that this regulatory appointment is aimed at monitoring our bank due to multiple operational concerns or otherwise. These claims are speculative and misleading.”
The development comes just days before Bandhan Bank managing director and CEO Chandra Shekhar Ghosh is set to retire on July 9. In April, the bank announced that Ghosh would assume a larger strategic role at the Bandhan group level following his retirement. The bank is actively seeking a new CEO and has appointed the recruitment firm Egon Zehnder to shortlist candidates to succeed Ghosh.
According to sources, the agency is looking outside the bank as internal candidates lack sufficient experience at the board level. Bandhan Bank has two executive directors, Rajinder Babbar and Ratan Kesh. Babbar has been on the board for just two months, while Kesh has little over one year of board experience. The RBI is expected to be more comfortable with a more experienced candidate.
“Regarding the selection of a new CEO, the bank has formed a board committee to oversee the process, which is progressing as planned. Once finalised, the bank will share the shortlist with the RBI,” said the lender.
