Shares of Bandhan Bank plunged 6.5 percent on Wednesday, July 5, following the announcement of resignation of its Chief Financial Officer (CFO), Sunil Samdani.
Samdani, who also held the position of Executive President and key managerial person (KMP) at the bank, decided to step down from his roles on July 3 in order to pursue a new opportunity.
Following his decision to move away, Samdani will observe a three-month notice period, effective until October 1, 2023
During Wednesday’s trade, the stock opened at a price of Rs. 219 per share against the previous close of Rs. 231.25 and dipped further during the early trading session to touch an intraday low of Rs. 216.10 per share on NSE.
It was trading at Rs. 220.90, down by 4.48 percent, at 10:45 a.m. on the NSE.
The stock touched a 52-week high of Rs. 314.80 on September 15, 2022 and a 52-week low of Rs. 182.15 on March 28, 2023, indicating that at the current level, the stock is trading over 21.2 percent above its 52-week low and 29.8 percent below its 52-week high.
The stock has dropped nearly 16 percent in the last one month. Moreover, in the past one year, it has declined by almost 19 percent. Furthermore, the stock yielded a negative return of over 59 percent in the last five years.
Bandhan Bank stated in the notification that it is currently searching for a suitable candidate to fill the position of CFO and KMP, and that it will inform the stock exchanges once the appointment is made.
In his resignation letter, Sunil Samdani expressed gratitude for the trust placed in him and the valuable opportunity to contribute to the establishment and growth of a bank of such magnitude.
"This has been the toughest decision of my career as I have built this institution from the start. It has been a challenging, enriching, and fulfilling experience that offered me phenomenal learning every single day," Sunil Samdani said.
Since Bandhan Bank obtained its banking license and started its operations in 2015, Sunil Samdani has been affiliated with the bank and has held the position of CFO continuously.
For the fourth quarter ending on March 31, 2023, the bank witnessed a significant decrease in net profit, recording a year-on-year decline of 57.5 percent. The net profit for this period amounted to ₹808.3 crore, compared to the previous year's corresponding quarter when the bank reported a net profit of ₹1,902 crore.
Based in Kolkata, Bandhan Bank Ltd. is a prominent banking and financial services company operating across India. With a widespread presence in 34 out of 36 states and union territories, the bank serves a vast customer base of 3 crore individuals through its extensive network of 6,000 banking outlets, its website shows.
According to a MintGenie poll, 26 analysts on average have a ‘BUY’ call on the stock.
