Bandhan Bank's Ghosh not to be part of board post retirement

livemint.com:

Bandhan Bank's founder and managing director Chandrashekhar Ghosh will not be part of the bank's board in a non-executive role once he retires on 9 July. Speaking to analysts and investors on Monday, Ghosh clarified that the board will start the process of finding his successor and expects the names of candidates to be finalized by July. Explaining the rationale behind this sudden decision to step down, Ghosh clarified that it was a voluntary decision and that the Reserve Bank of India (RBI) had no role to play in his resignation.

The board may even look at appointing an interim chief executive officer post his tenure, if the RBI’s approval for the new CEO does not come in by then. "The bank is ready to take the next leap of growth with capable leadership. I can assure you on behalf of the board that it will be a smooth transition," he said.

"By July first week, the board will decide whether there is a need for an interim CEO," he added. Ghosh's retirement comes at a time when the board had approved his re-appointment for three more years in November last year. "Business momentum has become good.

In October, we had undertaken the biggest transformation of IT in the core banking system. I had to stabilize it. When in November 2023, the board decided to renew my appointment, I couldn't say anything.

That time was crucial for the IT transformation," he said. Mint had reported last December that big-four accounting firm EY is currently conducting a forensic audit on a portion of Bandhan Bank’s loan book that’s backed by government guarantees. During the call, the bank's management clarified that the audit will take one more month and has no linkage to Ghosh's decision to retire.