Bandhan Bank jumps 12% on new CEO appointment: Signs of revival or a momentary spike?

Bandhan Bank has been facing a tough time. Its stock, which peaked at Rs 742 post the 2018 IPO, has since wiped out substantial shareholder wealth. The bank's share price has declined 20 per cent annually over the last five years despite the raging bull market. Its gross NPAs (non-performing assets) also soared to 10 per cent during the Covid-19 crisis due to geographical concentration. But a recent single-day jump of 12 per cent in the stock has aroused investor interest. This upward movement was driven by two key developments: New leadership: Bandhan Bank's founder, Chandra Shekhar Ghosh, who served as MD and CEO, retired in July this year. This leadership vacuum was finally filled with the appointment of Partha Sengupta as the new MD and CEO on October 10, 2024. Notably, the stock experien