Bandhan Bank‘s shares extended their underperformance after declining as much as 9% on Monday after MD & CEO Chandra Shekhar Ghosh announced as he will retire from his position by July this year. In an interaction with CNBC-TV18, Ghosh mentioned that his decision to retire is personal and voluntary.
Also Read : DCG Cables & Wires IPO: Check Subscription Status, GMP Today
Brokerages tracking Bandhan Bank have also issued downgrades on the stock, saying that Ghosh’s resignation will lead to near-term uncertainty and the overhang will persist until a proper succession plan is finalised.
Domestic mutual funds had increased their stake in Bandhan Bank during the December quarter to 9.63% from 8.49% in the September quarter. The lender is yet to share its shareholding pattern for the March quarter.
Among the top funds that have stake in Bandhan Bank include the Tata Arbitrage Fund, Kotak Equity Arbitrage Fund, Nippon life India Trustee Ltd., and Aditya Birla Sun Life AMC.
India’s largest life insurer Life Insurance Corporation of India (LIC) also has a 3.69% stake in Bandhan Bank.
| Mutual Funds Stake In Bandhan Bank | |
| Fund | Stake In December 2023 |
| Tata Arbitrage Fund | 1.09% |
| Kotak Equity Arbitrage Fund | 1.27% |
| Nippon Life India Trustee | 1.46% |
| Aditya Birla Sun Life Trustee | 1.64% |
| LIC | 3.69% |
Also Read : Aadhaar Enabled Payment System: Withdraw, Deposit Money & More, Know Details About AEPS
Key Levels To Track?
Sacchitanand Uttekar of Tradebulls told CNBC-TV18 that the monthly ADX indicator on the charts is about to break above its 25 level, indicating that the price movement of Bandhan Bank continues to remain in a bear grip.
“It is anticipated that the current bearish sequence is likely to extend till the ₹160 – ₹155 zone,” he said, adding that a shift in momentum is only possible once it crosses the ₹200 – ₹210 zone which is where it saw a significant breakdown on a monthly basis.
“Therefore, in the coming months we anticipate a further drop towards ₹160 – ₹155 levels,” he said.
Bandhan Bank has witnessed a strong breakdown from a triangle pattern on the daily charts around ₹195, which resulted in an incremental pressure till levels of ₹175, said Gaurav Bissa of InCred Equities.
“Though it managed to witness a smart bounce it has failed to sustain above the breakdown levels. the bias will remain cautious till the time it does not close above 195 levels. the immediate supports are seen at 173 levels,” he added.
Also Read : Markets Hit Record High In Early Trade; Sensex Jumps 307 Points
Shares of Bandhan Bank are trading 4.7% lower at ₹188.1. The stock is in the F&O ban, which means no new positions can be taken on the stock.
