The Reserve Bank on Monday appointed A K Singh as an additional director on the board of Bandhan Bank.
The appointment of Singh, a career central banker who retired as chief general manager of RBI, is for one year, the Kolkata-headquartered lender said in a regulatory filing. Bandhan Bank, however, did not specify the factors which have necessitated Singh's appointment. There are not too many instances of such actions by the central bank.
A recent precedent would include appointing a serving RBI official on the board of private sector lender RBL Bank, following reports of certain concerns in the running of the bank.
It may be noted that the development comes ahead of Bandhan Bank's founder and chairman C S Ghosh's retirement from the bank on July 9.
The microlender turned bank is grappling with a high proportion of stressed advances and has been wanting to reduce the share of unsecured loans in the overall pie.
The Bandhan Bank scrip closed 0.67 per cent down at ₹207.75 a piece on the BSE on Monday, as against gains of 0.17 per cent on the benchmark.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.