The broking firm Motilal Oswal has maintained a ‘Neutral’ rating on the stock of Bandhan Bank. It also kept the target price unchanged at Rs 190 a piece. The brokerage house iterated its rating and price target after the bank’s managing director and chief executive officer, Shekhar Ghosh, announced retirement upon completion of his tenure on July 09. 

The bank is now searching successor for Shekhar Ghosh before the completion of his tenure. The resignation of Ghosh came as a surprise for markets as the board of the bank had approved his name, recently, for another term. The bank will now have to submit a shortlist of names to the RBI for approval before his tenure is completed, “this may entail the evaluation of external candidates as well,” said the brokerage firm. 

The top-level exit will drag the growth of the bank in FY25. It has already witnessed a lot of changes in the upper management. The bank recently hired various people for leadership roles. Motilal expects that the resignation of MD will delay the recovery in underlying business and earnings. “Additionally, the outcome of the CGFMU audit remains another near-term overhang.” the brokerage house said.