City Union Bank surges 10% on re-appointment of N Kamakodi as MD & CEO

Shares of City Union Bank (CUB) surged 10 per cent to Rs 146.50 on the BSE in Thursday's intra-day trade after the Reserve Bank of India (RBI) approved the reappointment of N. Kamakodi as the managing director and chief executive officer (MD and CEO) of the bank for three years with effect from May 1, 2023.

At 09:20 am, the stock was trading 5 per cent higher at Rs 139.95 backed by heavy volumes. The average trading volume on the counter jumped over two-fold with a combined 1.4 million equity shares having changed hands on the NSE and BSE till the time of writing of this report. In comparison, the S&P BSE Sensex was up 0.01 per cent at 60,307.

"We hereby inform that based on the recommendation of the Board of Directors of the Bank, the Reserve Bank of India has given its approval for the reappointment of Dr N Kamakodi as the Managing Director and CEO of the bank for a further period of three years with effect from May 1, 2023," the bank said in a BSE filing on Wednesday.

This comes in as a positive development for CUB, especially when RBI has recently approved reappointment of one of the large private sector bank's MD & CEO for 2 years instead of 3 years," ICICI Securities said in a note.

That said, in the past six months, City Union Bank has underperformed the market by falling 26 per cent, as compared to 1 per cent rise in the S&P BSE Sensex.