Kolkata: Bandhan Bank shares witnessed a sharp decline of 9% in early Monday trading following the resignation of its Managing Director & CEO, Chandra Shekhar Ghosh. The stock dropped to ₹179.55 after Ghosh announced his departure effective July 9, 2024.

Foreign brokerage Jefferies downgraded Bandhan Bank's rating to 'Underperform' from 'Buy' and slashed its target price to Rs 170, citing concerns over the leadership transition and potential impact on growth and credit costs.

Similarly, Nomura also downgraded its rating on Bandhan Bank to 'Reduce' from 'Buy', reducing the target price to Rs 175. They highlighted uncertainties regarding business continuity and potential impact on liabilities, asset quality, and growth.

Emkay Global Financial Services expressed concerns over management uncertainty and potential delays in the bank's recovery story, lowering its rating to 'Reduce' and cutting the target price to Rs 175 per share.

Bandhan Bank has faced a series of senior management exits in recent years, contributing to investor skepticism. The stock has plummeted more than 18% in 2024, significantly underperforming market indices.

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