CSB Bank CEO & MD Rajendran to retire early on health grounds
Following the resignation, the board has decided to set up an independent executive search committee to identify a successor
PremiumKerala-based CSB Bank’s managing director and chief executive officer CVR Rajendran has decided to take early retirement on health grounds, the bank said in a press release on Saturday.
Rajendran, whose term was set to end only on 8 December this year, has cut short his term till 31 March.
“This is to inform you that the bank's board in its meeting held on January 8, 2022, considered and accepted the request of CVR Rajendran to take early retirement from the position, to take care of his health under the advice of his physicians," the bank said.
Following the resignation, the board has decided to set up an independent executive search committee to identify a successor.
“The Board decided to constitute a search committee to identify and evaluate candidates from internally or externally for the position of Managing Director and CEO. It has been decided to engage an independent executive search firm in this connection," the press release said.
Rajendran was appointed at the helm of CSB Bank in 2016 after the Reserve Bank of India allowed billionaire Prem Watsa owned Fairfax Holdings to pick up a 51% stake in the bank, earlier known as the Catholic Syrian Bank.
During his tenure, the bank saw capital infusion worth ₹1,208 crores from FIH Mauritius Investments Ltd (a subsidiary of Fairfax India Holdings Corporation). The bank also raised ₹500 crores through an initial public offering which was oversubscribed 87 times.
Prior to the current role, Rajendran was holding the position of Chief Executive Officer of the Association of Mutual Funds in India. He has held other key positions like Chairman and Managing Director of Andhra Bank and Executive Director at Bank of Maharashtra.
CSB has been in the middle of a tussle between the management and employees over the non-implementation of wage revision. While CSB Bank has told its unions that it would implement the wage agreement concluded between Indian Banks' Association (IBA) and the unions, it did not give its consent to IBA to negotiate with unions on its behalf.
Under Rajendran’s leadership, CSB Bank returned to profitability in the first quarter of the fiscal year 2020, after incurring losses for many consecutive quarters. During the second quarter of fiscal year 2022, the bank reported a 2% jump in net profit to ₹118.57 crore in the second quarter ended September. The Kerala-based private sector lender had reported a net profit of ₹68.90 crore in the corresponding quarter of the previous fiscal.
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