Shares of Bandhan Bank fell for the second consecutive session on Tuesday after the Reserve Bank of India appointed an additional nominee director in anticipation of operational issues.
The central bank appointed Arun Kumar Singh, a retired chief general manager of the Reserve Bank of India, as an additional director on the bank's board.
Singh has been appointed for a period of one year, from June 24, 2024, to June 23, 2025, or till further orders, whichever is earlier, according to an exchange filing.
The bank is currently undergoing a leadership transition. Chandra Shekhar Ghosh, the founder, managing director and chief executive officer of the bank, is set to retire on July 9, and his successor is yet to be appointed.
In addition, the bank is also in the midst of a forensic audit of its government-guaranteed loan portfolio worth Rs 23,300. Typically, the regulator appoints a nominee director when it anticipates any operational issues.
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Shares of the company fell as much as 4.4% to Rs 198.80 apiece, the lowest since June 19. It pared losses to trade 1.6% lower at Rs 204.60 apiece as of 10:11 a.m. This compares to a 0.17% advance in the NSE Nifty 50 Index.
The stock has fallen 15.28% on a year-to-date basis and 15.4% in the last 12 months. Total traded volume so far in the day stood at 0.87 times its 30-day average. The relative strength index was at 60.7.
Out of 26 analysts tracking the company, 12 maintain a 'buy' rating, seven recommend a 'hold,' and seven suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.8%.
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