MUMBAI: About two weeks before founder and CEO Chandra Shekhar Ghosh plans to retire, the Reserve Bank of India (RBI) has named a former central banker to the Bandhan Bank board.
The bank did not provide an explanation for the RBI's decision to add retired chief general manager Arun Kumar Singh as a new director to its board, even though it was disclosed late on Monday.
Since Bandhan Bank's succession plan is still in the works, the RBI's action is probably going to guarantee a seamless transfer there, media reports said, citing persons aware of the mattrer. Singh would also be in favor of the bank's board of directors being overseen.
Analysts estimate that RBI chose to pick Singh in order to guarantee Bandhan Bank's smooth operation.
According to Suresh Ganapathy, managing director and head of financial services research at Macquarie Capital, "the issue in the case of Bandhan (Bank) is that there aren't sufficient internal candidates in the bank who have served the bank for a long time at board level to be eligible for the CEO position." Ganapathy reportedly made this statement in a note to clients on Tuesday.
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