Fri Oct 11 16:52:29 UTC 2024: ## Bandhan Bank Shares Surge on RBI Approval and CGFMU Claim

**MUMBAI, INDIA -** Bandhan Bank’s share price soared over 14% on Wednesday, fueled by positive news regarding the appointment of a new CEO and a significant credit guarantee claim.

The Reserve Bank of India (RBI) has approved the appointment of Partha Pratim Sengupta as the new Managing Director and CEO of the private sector bank. Sengupta, who accepted the offer on October 9th, will officially begin his three-year tenure on November 10th.

The appointment, endorsed by Bandhan Bank’s Nomination and Remuneration Committee, is seen as a positive development by market analysts. Sengupta brings extensive experience from West Bengal, a crucial market for the bank.

Furthermore, Bandhan Bank received a boost from the National Credit Guarantee Trustee Company (NCGTC) completing a forensic audit of its claims under the Credit Guarantee Fund for Micro Units (CGFMU) scheme. The total estimated payment for the claims till March 2024 amounts to ₹1,231.29 crore. The bank has already received ₹916.61 crore in December 2022, and expects to receive an additional ₹314.68 crore.

This development is expected to positively impact the bank’s profitability and credibility.

Global brokerage firm Jefferies has maintained its ‘Buy’ rating on Bandhan Bank, with a target price of ₹240. The firm highlighted the positive impact of the new CEO appointment and the CGFMU claim, which is expected to bring in an additional ₹320 crore.

**Disclaimer:** The views expressed in this article are those of the author and do not represent the opinions of Moneycontrol.com. Users are advised to consult with certified experts before making any investment decisions.

Read More