Shares of Bandhan Bank on Monday tanked over 9 per cent after the private sector lender said its founder, managing director and CEO Chandra Shekhar Ghosh has decided to demit office after the completion of his tenure.
The stock declined 9 per cent to Rs 179.55 on the BSE.
At the NSE, shares of the company tumbled 9.17 per cent to Rs 179.25.
Ghosh will retire from the services of the bank as MD and CEO upon completion of his current tenure on July 9, 2024, the bank said in a regulatory filing on Friday.
"After leading the bank for almost a decade, including three consecutive tenures (9 years) as MD & CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level," Ghosh said in a letter addressed to the board.
As per RBI guidelines, the tenure of MD and CEO of private banks cannot be more than 15 years.
Bandhan Bank was launched on August 23, 2015, with 501 branches and 50 ATMs spread across 24 states.
It is the first-ever microfinance institution to become a universal bank from the Eastern region.
In 2018, Bandhan Bank was successfully listed on the bourses. In 2019, the acquisition of Gruh Finance took place to provide more affordable banking solutions to home buyers.