South Indian Bank shares dive 13% as MD Ramakrishna opts out of reappointment
1 min read 29 Mar 2023, 04:06 PM ISTSouth Indian Bank is expected to name a new MD and CEO by May end
PremiumShares of Thrissur-headquartered South Indian Bank fell sharply in Wednesday's trade after its chief executive and managing director Murali Ramakrishnan said he will not apply for an extension when his tenure ends on 30 September, citing personal reasons/family circumstances.
"This is to inform that the Board of Directors of the Bank, in their meeting held today, i.e., March 28, 2023, considered the request of Murali Ramakrishnan, Managing Director & CEO, not to offer himself for re-appointment due to personal reasons/family circumstances, on completion of his current term i.e., up to September 30, 2023," the lender said in a filing.
“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," Ramakrishnan has said.
The bank is expected to name a new MD and CEO by May end. "The Search Committee, constituted by the Board, will identify and evaluate suitable candidates for the position of Managing Director & CEO," the lender said.
Ramakrishnan said in a press conference that the bank has hired leadership advisory firm, Hunt Partners to work closely with the bank and look for both internal and external candidates for the appointment of the new MD and CEO, according to reports.
The bank has reported a net profit of ₹102.75 crore for the December quarter. The net interest margins (NIM) widened to 3.52 per cent for the quarter, and Ramakrishnan said the bank will be able to close FY23 with a NIM of 3.20 per cent.
The stock was trading 13.29 per cent lower at ₹14.35 apiece. Around 89.49 lakh shares changed hands today, which was more than thrice compared to the two-week average volume of 27.68 lakh shares.
