look news india
New Delhi: Private sector Bandhan Bank witnessed tremendous growth on Friday. Shares of Kolkata-headquartered Bandhan Bank jumped over 10 per cent in early trade. The reason for this is a decision of the Reserve Bank of India (RBI), which has resolved the problems related to the management of Bandhan Bank.
What is the decision of RBI?
Banking regulator RBI has approved the appointment of Partha Pratim Sengupta as Managing Director and CEO of Bandhan Bank. This decision came after the stock market closed yesterday, the effect of which was seen today. There was a surge in the shares of Bandhan Bank as soon as the market opened on Friday.
Bandhan Bank shares opened with a rise of Rs 200.20 on BSE. The momentum continued from here. By 1 pm, Bandhan Bank shares were trading at Rs 206.81, up 10.18 per cent.
What will be Parth's tenure?
RBI has approved the proposal to appoint Partha Pratim Sengupta as MD and CEO of Bandhan Bank for three years. According to Bandhan Bank, Sengupta's three-year tenure will be counted from the date he assumes charge. Sengupta will replace Chandrashekhar Ghosh, the bank's founder MD and CEO. Chandrashekhar had left his post on 9 July.
Currently, the bank's executive director Ratan Kesh is taking over as the interim MD and CEO. Sengupta has extensive experience in retail and corporate banking. He has been the MD and CEO of public sector Indian Overseas Bank.
Experts are also bullish about Bandhan Bank
The stance of brokerage firms on Bandhan Bank is quite bullish. Jefferies has given buy rating to Bandhan Bank shares. Apart from this, the target price has also been increased to Rs 240. Jefferies says strong support from the company's new CEO will be positive for the bank. He also expects 15 percent ROE in the bank's business. According to Jefferies, overall financial performance of the bank will be good.
However, like most of the stocks in the banking sector, Bandhan Bank has also been in the doldrums for some time. In the last 6 months, Bandhan Bank has given returns of about 13 percent. However, in the last one year, investors have got a negative return of 17 percent from Bandhan Bank.