RBI requests new CEO candidate submissions from Federal Bank

RBI requests new CEO candidate submissions from Federal Bank

RBI requests new CEO candidate submissions from Federal Bank

On September 22, 2024, Srinivasan's three-year term as MD and CEO of Federal Bank is expected to come to an end.

Federal Bank, a private sector lender, has been requested by the Reserve Bank of India (RBI) to provide a revised proposal including the names of at least two new candidates for the positions of managing director and chief executive officer.

The bank has written to the RBI on October 6, 2023, requesting a one-year extension for Shyam Srinivasan's position as CEO and MD. His present three-year term expires on September 22, 2024.

But on January 4, the RBI sent the bank a letter requesting that it submit a revised proposal with the names of at least two applicants for the position of CEO.

The bank said that its board of directors had recorded the RBI letter at its meeting on January 5 and will move further in accordance with that decision.

On September 23, 2010, Srinivasan was initially named CEO and Managing Director of Federal Bank. Through many reappointments, he has served in this position for ten years.

A discussion paper published by the RBI in June 2020 titled "Governance in Commercial Banks in India" suggested limiting the number of years bank promoters may serve as CEOs or whole-time directors (WTDs) at the bank to ten for members of the promoter group and fifteen for non-members.

As a result, Srinivasan has till 2025 to continue serving as CEO. The RBI has also suggested capping the age at which bank CEOs and WTDs may retire at 70 years old.

Q3 report

The bank said on January 2 that for the December quarter, advance payments increased by 18% to Rs 2.02 lakh crore. At the conclusion of the third quarter of the previous fiscal year, Federal Bank reported in a regulatory filing that total advances amounted at Rs 1.71 lakh crore.

The retail credit book expanded by 20% and the wholesale credit book by 17%, according to internal categorization. The ratio of retail to wholesale is said to be 55:45. Additionally, bank deposits increased by 19% during the quarter to Rs 2.39 lakh crore from Rs 2.01 lakh crore in the same time last year.

On January 5, the share price of Federal Bank ended the day 0.29 per cent down on the BSE at Rs 154.40 a share.