The shares of Bandhan Bank witnessed an increase of over 1% on Thursday, recovering slightly after declining to its lowest level in the previous session. The bank’s stock price closed at Rs. 175.90, rising Rs. 2.05 or 1.18% during the day’s trade. It had touched an intraday high of Rs. 176.40 but also dropped to Rs. 174.60 at one point.
The stock has been on a downward trend ever since the bank’s Managing Director and CEO Chandra Shekhar Ghosh announced his plans to retire from the top position upon completion of his current term ending in July 2024. The uncertainty surrounding his successor has introduced volatility in the share value.
Ghosh had recently attempted to ease concerns, urging stakeholders “not to worry” after his unexpected retirement announcement earlier this month. He explained that the bank would need at least three months to evaluate potential candidates to replace him, followed by regulatory approval from the RBI which could take additional time.
At its highest, the stock had reached Rs. 272 but its all-time high is Rs. 741.80. In an earlier downgrade, a leading global brokerage firm had slashed its growth and profit estimates for the bank for the fiscal years 2025 and 2026, decreasing its EPS projections by 10-14%. This had contributed to the stock’s downward trend.
Investors and analysts will be keeping a close watch on the bank’s performance as it works towards transitioning to new leadership at the helm in the coming months. The selection of a successor will be a key factor influencing future investor sentiment.
