Bandhan Bank Share Price: Brokerages turn ‘extremely’ negative amid surprise resignation of MD & CEO

Shares of Bandhan Bank in focus as brokerages, analysts turn negative and cautious on the stock and the bank’s future prospects after the surprise resignation of MD & CEO, Chandra Shekhar Ghosh.

Shares of Bandhan Bank in focus as brokerages, analysts turn negative and cautious on the stock and the bank’s future prospects after the surprise resignation of MD & CEO, Chandra Shekhar Ghosh, who led the bank and its growth in the last several years. “The resignation of Mr Ghosh, has come as a negative surprise as the Board had approved (refer link) his re-appointment for three years in Nov’23,” said ICICI Securities in its latest note.

ICICI Securities further changed its rating on the stock from Add to ‘Under Review’, stating the their rating and target price for the stock stays suspended until further clarity. ICICI Securities had a target price of Rs 250 on the stock. “ We believe the stock price ahead could tread divergently vs underlying business or financial performance until more clarity emerges on MD & CEO succession,” the brokerage said.

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Foreign brokerage firm Jefferies also cut its target price on the stock from Rs 290 to Rs 170 and downgraded its rating to Underperform from Buy earlier. Jefferies too believes that succession is the key thing as most of the senior management is also new at the bank. The uncertainty around the matter could also lead to slower growth and higher credit costs, Jefferies said in its note. “Given the uncertainty, we are lowering our growth outlook and credit cost estimates for FY25-26, driving our EPS down by about 10-14%,” said Jefferies.