RBI appoints Arun Kumar Singh as additional director on Bandhan Bank board, stock down 3%

According to a report, the step is likely to guide the lender in succession planning as Bandhan Bank’s founder MD and CEO Chandra Shekhar Ghosh’s tenure will end on July 9. Following the announcement, shares of Bandhan Bank were trading lower by nearly 3% on Tuesday.

The bank clarified that Arun Kumar Singh is not related to any other directors of the bank and has not been debarred or disqualified from holding the office of director by the Securities and Exchange Board of India (SEBI) or any other authority.

Singh has worked for the RBI for almost 36 years and has experience in several fields including non-banking supervision and regulation, banking supervision and regulation, financial inclusion, monetary policy, information technology, enforcement actions against banks and non-banks, and government banking, among others. Moreover, he has served as an RBI nominee director on the boards of five banking and non-banking entities. Singh was also the regional director for the State of Rajasthan for three years.

Singh holds a graduation in Economics and has pursued an MBA in Finance and HR. He is also a Certified Associate of the India Institute of Banking (CAIIB).

Meanwhile, Bandhan Bank saw a 1.6% year-on-year (YoY) rise in its net profit for the financial year ending on March 31, 2024, at ₹2,229 crore. The total income for the year grew 6.5% YoY to ₹12,490 crore. Meanwhile, the bank’s operating profit was down 6.4% YoY to ₹6,640 crore. The net interest income during FY24 was up 11.5% YoY at ₹10,326 crore.

The company also reported a growth of 25% YoY in deposits to ₹1.35 lakh crore while gross advances grew 14.5% YoY to ₹1.25 lakh crore in FY24.

Shares of the company have declined by nearly 17% since the beginning of the year. The stock has lost over 14% in the last one year.