Federal Bank open to external names for CEO position; says Shyam Srinivasan

Federal Bank

Kerala-based Federal Bank will consider external names as well for the post of managing director and Chief Executive Officer, Shyam Srinivasan, the current Managing Director & CEO of the bank said on January 16.

"RBI has declined the extension of one year. We are looking for external candidates as well for the position of MD & CEO, "he said.

On January 5, the Reserve Bank of India (RBI) asked the private sector lender to submit a fresh proposal containing at least two names for the position of Managing director and Chief Executive Officer.

"Our board has put out the note; the process is underway. We believe in the next few months the process will have results, "Srinivasan said.

On October 6, 2023, the bank had written to the RBI seeking a one-year extension for Shyam Srinivasan as the MD & CEO as his current three-year term ends on September 22, 2024.

Srinivasan was first appointed as the Managing Director and CEO of Federal Bank on September 23, 2010. He has completed a decade in the post through multiple re-appointments.
However, on January 4, the bank received a letter from the RBI to submit a fresh proposal containing the names of at least two fresh candidates for the selection of a new CEO.

Federal Bank on January 16 reported a net profit of Rs 1,007 crore for the December quarter of the financial year 2023-24, a 25 percent jump from Rs 803.6 crore in the year-ago period and higher than that market estimate of Rs 945.5 crore.

The bank's gross non-performing asset (NPA) stood at 2.29 percent, down from 2.43 percent recorded in the same quarter last year. Net NPA stood at 0.64 percent compared to 0.73 percent in the previous year.