Federal Bank witnessed a nearly 4% surge in its shares following hints that KVS Manian may be tapped as the bank’s CEO. As of 1:45 pm, the shares were trading 3.71% higher at ₹155.00.
According to reports from CNBC-TV18 on February 15, Federal Bank has shortlisted Kotak Mahindra Bank’s director KVS Manian as a potential candidate for the CEO position. The channel also noted that Federal Bank has identified two internal candidates for the role of MD & CEO.
Federal Bank is set to submit three candidate names to the Reserve Bank of India for approval as part of its succession planning. This move comes amidst efforts by the Kochi-based private lender to ensure a smooth transition in leadership.
Responding to inquiries, Federal Bank stated, “This process is overseen by the board in accordance with our succession plan. The process has commenced, and we are committed to ensuring a thoughtful transition.”
In January, the Reserve Bank of India declined Federal Bank’s proposal seeking an extension for its MD & CEO Shyam Srinivasan for one year. Srinivasan, who has been at the helm since 2010, was eligible for another year, but RBI regulations limit a CEO’s tenure to 15 years if the individual is not a promoter. Srinivasan’s current term concludes on September 22, 2024.
Federal Bank had informed the exchanges, “This request [extension for one year] was made in the context of the Reserve Bank of India’s permissible limit of 15 years on the term of an incumbent MD & CEO. (Mr. Srinivasan has been the bank’s MD & CEO since 2010).”
