Bandhan Bank has undergone significant changes in its leadership, with Chandra Shekhar Ghosh stepping down as Managing Director and CEO in 2020.
The bank has also seen a change in its business strategy, with a focus on expanding its presence in rural areas through its microfinance business.
Bandhan Bank has been successful in expanding its operations, with a presence in over 35,000 villages across India.
The bank has also been investing in digital transformation, with a focus on improving customer experience through its mobile banking app and online platform.
Bandhan Bank's Financial Performance
Bandhan Bank's Financial Performance is quite impressive, with a 10.3% increase in net profit to ₹331.25 crore in Q3. This is a significant jump from the previous quarter.
The bank's loan and advances have seen a 17.8% growth year-on-year, reaching ₹1.28 lakh crore at the end of the fourth quarter of the 2023-24 fiscal. This is a testament to the bank's ability to attract and retain customers.
Bandhan Bank's total deposits have increased to ₹1,42,511 crore, while its loans and advances were at ₹1,30,652 crore. This shows a strong growth in the bank's business, with a nearly 25% increase in Q2.
The bank's Q2 FY25 results showed a 30% jump in profit to ₹937 crore, beating expectations. This is a significant achievement for the bank, and a testament to its financial health.
Bandhan Bank's MD and CEO, Partha Pratim Sengupta, was appointed for a 3-year term, effective from July 9, 2024. This is a positive development for the bank, and is expected to bring stability and continuity to the leadership team.
Bank's Leadership and Appointments
Bandhan Bank's leadership has seen some significant changes in recent times. Partha Pratim Sengupta was appointed as the Managing Director & Chief Executive Officer (MD & CEO) for a period of three years, with his tenure counting from the date of taking charge.
The appointment of Partha Pratim Sengupta was approved by the Reserve Bank, and he is expected to take charge by November 10, 2024. This new development comes as the incumbent CEO, Chandra Shekhar Ghosh, is set to retire in July 2024 after nearly nine years at the helm.
Ghosh has been instrumental in managing the lender's affairs since July 10, 2015, and will retire upon completion of his current tenure on July 9, 2024.
RBI Clears Partha Pratim Sengupta as MD and CEO
The RBI has cleared Partha Pratim Sengupta as the new MD and CEO of Bandhan Bank.
His tenure as MD and CEO will be for a period of three years, starting from the date he takes charge, which should be no later than November 10, 2024.
The RBI has approved this appointment, and Bandhan Bank has confirmed it in a regulatory filing.
Lender's CEO to Retire in July
Bandhan Bank's CEO, Chandra Shekhar Ghosh, will retire in July 2024. He has been managing the lender's affairs for nearly nine years, since July 10, 2015.
Ghosh will retire from the services of the bank as MD and CEO upon completion of his current tenure on July 9, 2024.
Shares Reverse Opening Losses; 24% Upside Potential
Bandhan Bank shares have made a remarkable recovery, reversing their opening losses after the lender's mixed Q4 show.
Bandhan Bank staged a mixed financial performance for the final three months of FY24, with key highlights indicating a reversal in losses.
The lender's stock price had plummeted 9% after the sudden resignation of its MD & CEO, but its shares have now reversed the losses.
Brokerages are divided on Bandhan Bank shares after the lender's mixed Q4 performance, but the stock still holds a 24% upside potential.
Bank's Business and Services
Bandhan Bank offers a wide range of banking services to its customers. These services include savings accounts, current accounts, and fixed deposits.
The bank's business model focuses on serving the underbanked and unbanked population in India. It aims to provide financial inclusion to rural and semi-urban areas.
Bandhan Bank has a strong network of over 5,700 branches across the country. This extensive network enables the bank to reach out to a large customer base.
Loans for Small Businesses
Bandhan Bank offers timely financial support to invest in income-generating activities for small businesses. This support is available for existing micro loan borrowers.
The bank's loans for small businesses are designed to help entrepreneurs grow their businesses with quick and easy access to funds. Funds are also available for existing Emerging Entrepreneurs Business (EEB) customers to fund growing business needs.
With Bandhan Bank's loans, you can harvest success with timely funds made possible by their convenient Agri Loan. This loan is specifically designed for farmers and agricultural businesses.
Bandhan Bank's loans and advances have shown significant growth, clocking Rs 1.28 lakh crore at the end of the fourth quarter of the 2023-24 fiscal, registering a 17.8 per cent growth year-on-year.
Facilitating International Trade
Bandhan Bank has launched products to facilitate international trade. These products will empower small and medium-sized enterprises (SMEs) and corporates to expand their businesses globally.
SMEs and corporates can now easily access new markets and customers with these products. This will help them grow their businesses and increase their revenue.
Retail customers can also make remittances to other countries using these products. This will make it easier for them to send money abroad to their loved ones.
By facilitating international trade, Bandhan Bank is helping businesses and individuals to reach new heights.
Frequently Asked Questions
Is Bandhan Bank a good buy?
Bandhan Bank's short-term price trend is weak, indicating a potential fall, but its quality and valuation ratings are worth checking before investing. Consider reviewing these ratings for a more informed decision.
Is it safe to keep money in Bandhan Bank?
Yes, Bandhan Bank is a safe option for keeping your money, as it's regulated by RBI and insured for deposits. You can trust your savings with Bandhan Bank, just like with other small commercial banks in India.
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