Bandhan Bank shares plunge 6% on CFO resignation, Q1 business update

Shares of Bandhan Bank plunged 6 per cent in Wednesday's trade as Chief Financial Officer (CFO) Sunil Samdani resigned, citing professional opportunities outside the bank. Samdani's last day at the bank would be September 30 and that the lender is in the process of identifying a suitable candidate for the office of CFO and managerial personnel (KMP).

The stock fell 5.77 per cent to hit a llow of Rs 217.90 on BSE. With this, the banking stock has fallen 7.54 per cent year-to-date against a 3.75 per cent rise in the BSE Bankex.

The bank saw a 5.5 per cent sequential drop in advances at Rs 1,03,169 crore for the June quarter against Rs 1,09,122 crore in the March quarter. Advances grew 6.7 per cent over year-ago's Rs 96,650 crore.

Deposits at Rs 1,08,479 crore were flattish, 0.4 per cent QoQ. Deposits grew 16.6 per cent YoY over Rs 93,057 crore in the same quarter last year.

"Trends in retail deposits (including CASA) also stood flattish QoQ (up 5.9 per cent YoY). The proportion of retail deposits was thus constant QoQ at 71.2 per cent (78.4 per cent in 1QFY23). LCR ratio remained healthy at 175 per cent," said Motilal Oswal Securities.

"On the asset quality front, overall CE moderated 50 bps QoQ to 98 per cent, with a decline in collection efficiency both in the EEB segment and the non-EEB segment by 50 bps each," it said while suggesting a neutral rating on the stock.

Bandhan bank said the appointment of new CFO would be informed to the stock exchanges in due course.

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