Bandhan Bank hammered down

Bandhan Bank has been holding on to the top position of being the top loser on the BSE. On the back of heavy selling on the counter, the stock opened 3.5% lower at Rs.189.95 and soon dipped 9% to an intraday low at Rs.179.55, which is not too far from its 52-week low of Rs.173.45.

Over the weekend, the Bank announced that its MD & CEO, Chandra Shekhar Ghosh, founder of the bank and a big name when it comes to inclusive banking in India, will be retiring from his position after completing his current tenure on July 09, 2024.

After over 30-years in the Bank, the market is reading this retirement with some amount of wariness as the timing is bang in the middle of the ongoing forensic audit by the National Credit Guarantee Trustee Company (NCGTC); it final report is expected to be released any time now.  Audits are investigating various lapses, such as evergreening of loans and assessing potential inflation in the portfolio through fictitious customers.