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South Indian Bank is likely to name a new managing director (MD) and chief executive officer (CEO) by May end, said the Thrissur-based lender on Wednesday.
The bank’s shares dipped some 14 per cent at one point after MD and CEO Murali Ramakrishnan said he will not apply for an extension when his tenure ends on September 30, citing personal reasons.
The bank’s board on Tuesday considered Ramakrishnan’s request for not intending to continue on his post and appointed a search committee for his replacement. “Due to personal reasons I do not want to see a reappointment. My family requires my presence. I have six more months. All initiatives taken and those we are taking will be in good share. The search committee will go through a rigorous process to appoint the successor,” said Ramakrishnan on Wednesday.
According to the bank’s laws, if a CEO wants to apply for an extension, he should do it at least six months before the tenure ends. “In this case, we will have to share names with the regulator four months before the tenure gets over,” said Salim Gangadharan, chairman of South Indian Bank. He said a change of guard will not have any impact on the bank.
Ramakrishnan joined the bank as an advisor in July 2020 and took charge as the MD and CEO in October 2020. Before that he worked with ICICI Bank as a senior general manager.
The search committee is considering internal and external options for selecting a new chief.
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“From board’s point of view, we are happy to have Murali for one more term. We are on the right path and growing in terms of transformation and financial parameters. Unfortunately he is having a personal problem. We accept his personal decision, the bank is on the right path of selecting a new MD and CEO. We also want a three months concurrent running with Murali,” Gangadharan added.
The bank made a net profit of Rs 103 crore in the October-December quarter, compared to Rs 50 crore of loss in the same period the previous financial year.
