Bandhan Bank: Outgoing MD & CEO Chandra Shekhar Ghosh considering stake sale in promoter group, says report

This comes aft Ghosh said helium is departing arsenic MD & CEO of Bandhan Bank, effectual from July 9, 2024.

Over phone, Ghosh told the insubstantial anticipation of a involvement merchantability is "speculative", adding that helium would "like to clasp a strategical relation successful the holding company". Bandhan Bank did not respond to queries, arsenic per the report.

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Stake Dilution Ahead?

Sources said Ghosh is exploring possibilities concerning his shareholding successful Bandhan Financial Services, including the imaginable merchantability of a information of his involvement successful the promoter group.

He has begun discussions with respective banks and backstage equity (PE) investors, albeit astatine preliminary stages, they said.

“He has initiated immoderate aboriginal talks with a fewer banks to see buying retired his involvement successful the holding institution but hasn’t received encouraging feedback yet. A fewer backstage equity investors person besides been approached and talks are astatine aboriginal stages," arsenic per 2 bankers.

Ghosh whitethorn clasp 10 percent ownership successful the company, the study added.

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Stakeholders successful Bandhan Bank

Bandhan Financial Services serves arsenic the non-bank halfway concern institution (CIC), managing shares of Bandhan Bank via Bandhan Financial Holdings.

As per the FY23 yearly study of Bandhan Financial Services, Financial Inclusion Trust, North East Financial Inclusion Trust, and Bandhan Employee’s Welfare Trust collectively person a 55.34 percent involvement successful the company.

Entities linked to Ghosh and/or his household members, alongside prime employees of the Bandhan group, are among the shareholders successful Bandhan Bank.

Additionally, shareholders of Bandhan Financial Services comprise institutions specified arsenic SIDBI, the International Finance Corporation, and the Singapore-based sovereign wealthiness money GIC, held done Caladium Investments.

Bandhan started arsenic a non-government bureau (NGO) successful 2001, with a absorption connected women empowerment and poorness alleviation. In 2006 it acquired a non-banking concern institution (NBFC) licence and was renamed to Bandhan Financial Services Ltd (BFSL). In 2014 it received a banking licence from the Reserve Bank of India.

Launched with 501 branches and 50 ATMs successful 24 states, it was the archetypal microfinance instauration to go a cosmopolitan slope successful India. Its branches person much than tripled to 1,647 implicit the past 9 years and it presently has 32.6 cardinal customers. In 2019 it acquired Gruh Finance to supply affordable lodging loans.

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Published: 29 Apr 2024, 10:36 AM IST