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South Indian Bank CEO to Step Down, Shares Tumble 14%
30 Jan
Summary
- CEO PR Seshadri will not seek reappointment before his term ends.
- Bank's stock saw its steepest single-day fall since July 2018.
- Financials show improved Net Interest Income and net profit.
Shares of South Indian Bank Ltd. experienced a sharp decline of as much as 14% on Friday, January 30, marking the largest single-day drop since July 2018. This significant market reaction followed the announcement that Managing Director and CEO PR Seshadri will not be seeking reappointment upon the conclusion of his current term.
In a board meeting on January 29, Seshadri conveyed his decision to step down to pursue personal interests, confirming his continued service until September 30, 2026. The bank's board has commenced the process to identify and appoint a successor, involving candidate shortlisting and obtaining necessary approvals from the Reserve Bank of India and shareholders.
The bank's recent financial performance for the December quarter indicated positive trends, with a 1.3% growth in Net Interest Income and a 9.5% increase in net profit compared to the same period last year. Furthermore, asset quality improved, as evidenced by a reduction in both Gross and Net Non-Performing Assets.
