Bandhan Bank Founder & CEO Steps Down, 59 Lakh Shares Change Hands In Block Deal; Details

Bandhan Bank, one of India's private sector banks, is in focus today as its founder and chief executive, Chandra Shekhar Ghosh, announced his voluntary exit despite a board nod to continue in the top job. This decision has put Bandhan Bank shares under the spotlight, with the stock opening flat but showing a positive bias at Rs 185.15 per share against the previous close of Rs 184.95 per share. Early morning deals saw the counter reaching a high of Rs 187.40 per share, indicating initial investor interest.

As of 10:30 am, the bank stock continued to trade flat at Rs 185.50 apiece on the National Stock Exchange (NSE), with nearly 59 lakh equities changing hands. This stability follows two days of consecutive falls, although the scrip remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating persistent bearish sentiment among investors.

Analyst downgrades have further dampened investor confidence, with brokerages Jefferies and Nomura slashing their target prices for Bandhan Bank. Jefferies has downgraded Bandhan Bank shares to 'UNDERPERFORM' and reduced its price target to Rs 170 per share from Rs 290 per share, while Nomura has also slashed its price target from Rs 275 per share to Rs 175 per share.

Bandhan Bank, a constituent of the S&P BSE 200, has been facing a prolonged bearish trend. According to BSE analytics as of April 9, the stock has corrected by 21% in the last three months and 25% in the last five months, resulting in negative returns of 10% over the past year. Over a longer period, Bandhan Bank shares have witnessed a significant decline, crashing more than 40% in the last two years and 65% over the past five years, as per analytics data.

The bank's shares have a 52-week range of Rs 272 per share to Rs 173.45 per share on BSE, with a market capitalization of Rs 29,916 crore, according to the BSE website. Despite trading with minor gains of 0.20% at Rs 185.25 per share as of 11:40 am on the NSE, the stock has delivered negative returns of over 11% in the last year, indicating persistent challenges for investors.

The voluntary exit of founder Chandra Shekhar Ghosh adds to the uncertainties surrounding Bandhan Bank, with investors closely monitoring developments amid the ongoing turbulence in the banking sector. The departure of a key figure like Ghosh raises questions about the bank's future leadership and strategic direction, further contributing to the cautious sentiment prevailing among market participants.