New Delhi: Chandrashekhar Ghosh, the Managing Director and CEO of Bandhan Bank and its founder, will step down from his position on July 9, 2024, after serving for nine years. Ghosh wishes to play a bigger role within the Group.
Ghosh’s resignation comes during a forensic audit conducted by the National Credit Guarantee Trustee Company (NCGTC). The audit is examining $23.3 billion in loans and is expected to reveal potential irregularities, such as loan evergreening and fictitious customer accounts.
Despite recent additions to the senior leadership team, Bandhan Bank is actively seeking an external candidate who will succeed Ghosh. The bank’s problems, worsened by the pandemic, include a big increase in non-performing assets. The ratio of gross non-performing assets went from 1.48% in FY20 to 7.02% in FY24 Q3.
The loans under audit total ₹23,300 crore approximately. They make up a major portion of the bank’s loan portfolio, raising concerns about its asset quality and risk management.
