RBI inducts addl director on Bandhan Board ahead of CEO Ghosh's retirement

Ex RBI CGM Arun Kumar Singh appointed for one year to ensure smooth leadership transition

The Reserve Bank of India (RBI) has inducted an additional director on the board of Bandhan Bank, weeks before the current managing director (MD) & chief executive officer (CEO) Chandra Shekhar Ghosh’s retirement.

Arun Kumar Singh, former chief general manager (CGM) of RBI, will be on the board for one year, from June 24, 2024, to June 23, 2025, the Kolkata-based bank said in a late evening communication to the stock exchanges.

In a surprise move in April this year, Ghosh announced his retirement with effect from July 9.

The decision was taken even after the Bandhan board approved his extension for three years for November last year.

The bank is yet to propose names for Ghosh’s successor. It needs to suggest multiple names for CEOs – in the order of preference – to RBI for its approval.

Sources said the move was to assist in orderly and smooth transition and to support board oversight while adding there are no other material concerns with the bank currently.

“I continue to remain your MD & CEO till July 9, 2024, after ensuring transition according to the bank’s succession framework. Even after that, being in the strategic Bandhan Group level, I will always be available for any advice, whenever required by the bank,” Ghosh had said.

Singh, 60, has working experience of almost 36 years in RBI. He has worked in various capacities in the field of non-banking supervision & regulation, banking supervision & regulation, financial inclusion, monetary policy, information technology, enforcement actions against banks & non-banks and government banking, among others. He also has served as RBI nominee director on the boards of five banking and non-banking entities.

Bandhan Bank, which started its operations in 2015, was the first microfinance institution to become a universal bank. Bandhan, a not-for-profit entity, which was set up by Ghosh in April 2001, transformed into a non-banking financial company in April 2006 and finally into a universal bank in August 2015.