Chandra Shekhar Ghosh’s Departure Adds to Bearish Sentiment as Shares Face Downgrades and Block Deal Activity
Bandhan Bank, a prominent player in India’s private banking sector, witnessed significant market activity today following the voluntary resignation of its founder and chief executive, Chandra Shekhar Ghosh. Despite initial board approval for Ghosh to remain in his position, his decision to step down has sparked investor apprehension, leading to fluctuations in Bandhan Bank’s stock performance.
Shares of Bandhan Bank opened flat but displayed a positive inclination, trading at Rs 185.15 per share in early trading, compared to the previous day’s close of Rs 184.95 per share. Although the stock reached a high of Rs 187.40 per share in early trades, it later stabilized around Rs 185.50 per share on the National Stock Exchange (NSE), with approximately 59 lakh shares changing hands by mid-morning.
The announcement of Ghosh’s resignation has coincided with downward revisions in target prices by prominent brokerages such as Jefferies and Nomura. Jefferies downgraded Bandhan Bank shares to ‘UNDERPERFORM’ with a reduced price target of Rs 170 per share, while Nomura lowered its price target from Rs 275 per share to Rs 175 per share.
Despite being a constituent of the S&P BSE 200 index, Bandhan Bank has experienced a prolonged bearish trend, with substantial corrections over various timeframes. Over the last three months, the stock has declined by 21%, and over the last five months, it has fallen by 25%. Over one year, Bandhan Bank shares have delivered negative returns of 10%, reflecting the challenging market conditions surrounding the bank.
With a 52-week range of Rs 272 per share to Rs 173.45 per share on BSE, Bandhan Bank’s market capitalization stands at Rs 29,916 crore. Although the stock currently trades marginally higher at Rs 185.25 per share on the NSE, investors have witnessed a significant downturn over the past year, with negative returns exceeding 11%.
Ghosh’s voluntary departure has intensified uncertainties surrounding Bandhan Bank, prompting investors to closely monitor developments amid ongoing turbulence in the banking sector. The implications of Ghosh’s exit on the bank’s leadership and strategic direction remain subjects of keen observation, contributing to the cautious sentiment among market participants.
