- ByStartupStory | April 6, 2024
In a significant development for the private banking sector, Bandhan Bank’s founder, managing director, and CEO, Chandra Shekhar Ghosh, has announced his decision to step down from his role upon the completion of his nine-year tenure. The news was confirmed through a regulatory filing by the bank.
Ghosh is set to retire from his position as MD and CEO on July 9, 2024, marking the culmination of a remarkable journey at the helm of one of India’s prominent private sector lenders. In a letter addressed to the board, Ghosh expressed his desire to take on a larger strategic role within the Bandhan group, signaling a transition after nearly a decade of dedicated service.
“After leading the bank for almost a decade, including three consecutive tenures (9 years) as MD & CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level,” Ghosh said in his letter.
As per Reserve Bank of India (RBI) guidelines, the tenure of MD and CEO of private banks cannot exceed 15 years. Ghosh’s decision comes in line with these regulations, demonstrating adherence to governance principles.
Bandhan Bank, under Ghosh’s leadership, has seen significant milestones and growth since its inception. Established in 2015 with 501 branches and 50 ATMs across 24 states, it became the first microfinance institution from the Eastern region to transition into a universal bank. The bank was successfully listed on the bourses in 2018, further solidifying its position in the financial landscape.
Reflecting on the challenges faced during his tenure, Ghosh highlighted the bank’s resilience in overcoming obstacles such as demonetization, GST introduction, and natural calamities like cyclones Fani and Amphan. Despite these hurdles, Bandhan Bank has witnessed substantial growth, with deposits amounting to Rs 1.35 lakh crore and advances reaching Rs 1.28 lakh crore as of March 31, 2024.
“I sincerely request the board to accept my decision. I am grateful to the board for continued support and advice over the years, which has been a great source of strength,” Ghosh reiterated in his letter, expressing gratitude for the guidance and backing he received throughout his tenure.
The departure of Ghosh marks the end of an era for Bandhan Bank, prompting speculation about the succession plan and the appointment of a new leader to steer the bank forward. With Ghosh’s legacy deeply intertwined with the bank’s journey, his contributions are celebrated as the institution prepares for a new chapter under fresh leadership.
