In a recent development, Chandra Shekhar Ghosh, after announcing his resignation from Bandhan Bank as MD & CEO effective from July 9, 2024, is reportedly considering various options regarding his shareholding in Bandhan Financial Services. This includes the possibility of selling a portion of the stake owned by the promoter group.

Overview

Bandhan Financial Services, the non-bank core investment company (CIC), holds shares of Bandhan Bank through Bandhan Financial Holdings Limited. As per the FY23 annual report of Bandhan Financial Services, Financial Inclusion Trust, North East Financial Inclusion Trust, and Bandhan Employee’s Welfare Trust collectively possess a 55.34% stake in the company.

Stakeholder Information

Ghosh and/or his family members, along with select employees of the Bandhan group, hold shares in Bandhan Bank through these entities. Other shareholders of Bandhan Financial Services include entities like SIDBI, the International Finance Corporation, and a Singapore-based sovereign wealth fund held through Caladium Investments Pte Limited.

Stake Sale Possibility

According to reliable sources, Ghosh is exploring avenues to monetize his holding in Bandhan Financial Services. Initial discussions have been initiated with a few financial institutions, although feedback has not been overwhelmingly positive. Additionally, private equity investors have been approached, with talks in preliminary stages. It is speculated that Ghosh might not be looking for a complete divestment and could retain approximately 10% stake in the company.

When questioned about the potential stake sale, Ghosh, in a phone conversation, dismissed it as speculative and expressed his desire for a strategic position in the holding company.

Expansion and Recent Acquisitions

Bandhan Financial Holdings, on behalf of the Bandhan group, has recently ventured into the life insurance sector by acquiring a controlling interest in Ageon Life Insurance. Moreover, in the previous year, the entity, alongside GIC and ChrysCapital, acquired IDFC Mutual Funds for Rs 4,500 crore. Ghosh previously announced his decision to step down as MD & CEO of Bandhan Bank, effective July 9, 2024. Notably, a forensic audit is currently underway at the bank as reported by businessline.

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Published on April 28, 2024