Shares of Bandhan Bank declined severely to 7% after 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.
As of 9:30 am the shares were trading 6.71% lower at ₹184.10 on NSE.
Additionally, ICICI Securities modified its rating for the stock from Add to “Under Review,” noting that both their rating and target price would be halted until more information became available. 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.