 "Our succession plan is ready: Amitabha Guha")
A few top management executives of South Indian Bank, including its Managing Director and CEO V A Joseph, are set to exit in coming months. Amitabha Guha, non-executive chairman, tells Somasroy Chakraborty the succession plan has already been prepared and the transition would be smooth. Edited excerpts:
Have you prepared a succession plan?
Yes, our succession plan is ready. V A Joseph's term ends in September, and from October 1, V G Mathew, who is currently executive vice-president, will take charge as managing director and CEO of the bank. Mathew joined us from State Bank of India (SBI) earlier this year. He was chief general manager (corporate accounts group) at SBI and is an experienced banker. We have received the RBI’s approval for Mathew's appointment.
What is your headcount?
Our employee strength is around 6,800. This year, we had plans to recruit close to 500 new employees. Most of the recruitment for this financial year is now over.
What are your branch expansion plans?
We have 835 branches. On an average, we are adding 50 new branches every year. We are expanding our footprint outside Kerala and aiming to become a pan-India player. Currently, more than 50 per cent of our business comes from regions outside Kerala.
Do you plan to raise money to finance your expansion?
We plan to raise up to Rs 500 crore through a qualified institutional placement. But we are yet to decide the timing of this issue. It will depend on the pricing and market conditions. We have got shareholders' approval for the same. Apart from financing our expansion, the fund-raising programme will also help us strengthen our capital base.
South Indian Bank has a loan exposure in Bhushan Steel. Are you worried this account might turn non-performing because of the crisis faced by the company?
Our exposure in Bhushan Steel is only Rs 100 crore, which is relatively small compared to other banks. We are keeping a watch on the situation. I believe if banks do proper due diligence, they will be able to safeguard themselves against non-performing assets. For instance, Bhushan Steel had approached us for fresh loans of Rs 200 crore just before the crisis started. We did not agree
Have you prepared a succession plan?
Yes, our succession plan is ready. V A Joseph's term ends in September, and from October 1, V G Mathew, who is currently executive vice-president, will take charge as managing director and CEO of the bank. Mathew joined us from State Bank of India (SBI) earlier this year. He was chief general manager (corporate accounts group) at SBI and is an experienced banker. We have received the RBI’s approval for Mathew's appointment.
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Also, we have two positions for executive directors, one of which is currently vacant. Our (other) executive director, Abraham Thariyan, is also set to retire. We have decided to appoint Joseph George Kavalam and Varughese A G (both chief general managers) as our executive directors. So, we are well prepared and the transition is expected to be smooth.
What is your headcount?
Our employee strength is around 6,800. This year, we had plans to recruit close to 500 new employees. Most of the recruitment for this financial year is now over.
What are your branch expansion plans?
We have 835 branches. On an average, we are adding 50 new branches every year. We are expanding our footprint outside Kerala and aiming to become a pan-India player. Currently, more than 50 per cent of our business comes from regions outside Kerala.
Do you plan to raise money to finance your expansion?
We plan to raise up to Rs 500 crore through a qualified institutional placement. But we are yet to decide the timing of this issue. It will depend on the pricing and market conditions. We have got shareholders' approval for the same. Apart from financing our expansion, the fund-raising programme will also help us strengthen our capital base.
South Indian Bank has a loan exposure in Bhushan Steel. Are you worried this account might turn non-performing because of the crisis faced by the company?
Our exposure in Bhushan Steel is only Rs 100 crore, which is relatively small compared to other banks. We are keeping a watch on the situation. I believe if banks do proper due diligence, they will be able to safeguard themselves against non-performing assets. For instance, Bhushan Steel had approached us for fresh loans of Rs 200 crore just before the crisis started. We did not agree