Rajinder Kumar Babbar, a seasoned banking professional currently leading several finance verticals at HDFC Bank, is set to join Bandhan Bank as an executive director. His appointment is pending approval from the Reserve Bank of India (RBI). Babbar, who has also overseen rural business at HDFC Bank, will serve alongside Ratan Kumar Kesh in the executive layer established by Bandhan's managing director Chandra Shekhar Ghosh.
Bandhan Bank, a prominent player in the Banks industry as noted by InvestingPro, has been making significant strides in asset diversification and has experienced a 12.3% year-on-year growth with advances reaching Rs 1.08 lakh crore. This positive performance is in line with the InvestingPro Tip indicating that the bank's net income is expected to grow this year.
According to InvestingPro's real-time metrics, Bandhan Bank has a high gross non-performing assets ratio of 6.76%, a factor that continues to unsettle investors. This aligns with the InvestingPro Tip that the bank has been quickly burning through cash and suffers from weak gross profit margins.
The move to bring in Babbar is seen as part of a broader strategy to strengthen the bank's leadership team and address these investor concerns. With his extensive experience in the banking sector, particularly in rural business, Babbar is expected to contribute significantly to Bandhan Bank's ongoing efforts to diversify its assets and improve its financial performance.
It's worth noting that even with these challenges, analysts predict the company will be profitable this year, as highlighted by InvestingPro Tips. The bank has also been profitable over the last twelve months. For more insights like these, consider exploring InvestingPro's product that includes additional tips. There are six more tips related to Bandhan Bank available on InvestingPro.
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