Bandhan Bank Stock Jumps 7% After RBI Approves New MD & CEO, NCGTC to Pay ₹315 Crore Under CGFMU Claim

Bandhan Bank stock surge over 7% after RBI approves the appointment of Sengupta as Bandhan Bank MD & CEO.

Bandhan Bank Stock Jumps 7%: On Friday, Bandhan Bank stock surge over 7% after RBI approves Bandhan Bank MD & CEO appointment proposal.

RBI has given a green signal for the appointment of Partha Pratim Sengupta, a veteran public sector banker, as the new Managing Director and Chief Executive Officer in the private sector bank which boosted the Bandhan Bank stocks to reach Rs 204.90 on Friday, October 11.

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In a filing, Bandhan Bank said, "On the basis of recommendation of the Board of Directors of Bandhan Bank, the RBI, vide its letter dated October 08, 2024, has granted its prior approval for the appointment of Mr. Partha Pratim Sengupta as Managing Director & Chief Executive Officer of the bank, for a period of three years with effect from the date of taking charge, which shall not be later than November 10, 2024.”

Experts say that this move along the conclusion of the Credit Guarantee Fund for Micro Units (CGFMU) audit will remove all the key issues that has been hindering bank performance.

The good response from investors reflects that experts do not doubt the decision to appoint Sengupta as Bandhan Bank MD & CEO and CGFMU recoveries. Furthermore, Bandhan Bank reported that the NCGTC to Pay ₹315 Crore Under CGFMU Claim. The total assessed payout as of March 31, 2024, is Rs 1,231.29 crore.

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In December 2022, the bank got Rs 916.61 crore. As per the Bandhan Bank statement, with the complete payment of this claim, the total CGFMU scheme payout as of March 2024 is Rs 314.68 crore.

An international brokerage, Jefferies reported its "buy" recommendation on Bandhan Bank with the target price of Rs 240 for each share. It is also added that the appointment of Sengupta as Bandhan Bank MD & CEO was a positive sign.

Additionally, the bank will receive Rs 320 crore under a CGFMU claim and Rs 230 crore in returns which the support the bank to gain more revenue and build its reputation.

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