Bandhan Bank is trading over 60% lower than its listing price. While the stock has been underperforming the Bank Nifty index since March 2018, lack of clarity over leadership succession is now a big concern for investors.
Come July, Bandhan Bank’s managing director and CEO Chandra Shekhar Ghosh’s long association with the private lender will come to an end. In a surprise move on April 5, Ghosh said he will retire upon completion of his current term on July 9. While the stock is down nearly 12% since the announcement in which Ghosh also said that he would transition to a larger strategic role at the holding company level, investors don’t seem to be optimistic
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