India cenbank appoints director on Bandhan Bank`s board
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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.
