India cenbank appoints director on Bandhan Bank's board

Bandhan Bank

25/06/2024 02:39

MUMBAI, June 25 (Reuters) - The Reserve Bank of India
has appointed a director on the board of Bandhan Bank, the
lender said in a notification to exchanges late on Monday.
    The central bank and the lender did not specify the reason
for the decision.
    The central bank has the power to appoint directors on the
board of a bank under the country's Banking Regulation Act and
typically does so to increase oversight of a bank's operations.
    Arun Kumar Singh, chief general manager at the RBI, will act
as additional director of the bank for one year starting June
24, 2024, the bank said in its notification.
    For the quarter ended March 31, Bandhan Bank reported a 93%
drop in net profit as it increased provisions and wrote off bad
loans. 
    The bank had earlier disclosed that a set of loans it gave
out during the pandemic under a government-backed scheme were
being examined by the National Credit Guarantee Trustee Company,
an agency set up by the government to cover defaults by small
businesses.
    Bandhan Bank is also set to see a management transition as
Managing Director and CEO Chandra Shekhar Ghosh retires on July
9 after spending nearly a decade at the helm.
    

 (Reporting by Ira Dugal; Editing by Janane Venkatraman
)
 ((Ira.Dugal@thomsonreuters.com; +91-9833024892;))