Federal Bank has shortlisted Kotak Mahindra Bank's director KVS Manian as a CEO candidate, reported CNBC-TV18 quoting sources on February 15.
The channel also said that Federal Bank has shortlisted two internal candidates for the MD & CEO role.
Federal Bank will submit three candidate names to Reserve Bank of India for approval, reported CNBC-TV18. This is part of the succession planning at the Kochi-headquartered private lender.
Federal Bank told the channel, "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."
Last month, the Reserve Bank of India turned down a proposal from Federal Bank seeking an extension of its MD & CEO Shyam Srinivasan for one year.
Srinivasan, who took charge of the Aluva-based private sector lender in 2010, was eligible to continue for one more year. According to RBI norms, a CEO can continue in a bank for 15 years, in case the person is not a promoter. His current term expires on September 22, 2024.
“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),” Federal Bank had informed the exchanges.
Last month, Federal Bank reported 23 per cent increase in consolidated net profit at Rs 1,035.42 crore for December quarter 2023-24, helped by a sharp decline in provisions and also surge in non-interest income.
On a standalone basis, the private sector lender's net profit in the quarter increased 25 per cent to Rs 1,007 crore, its highest ever.
Core net interest income (NII) grew 8.53 per cent to Rs 2,123 crore, while the other income jumped 61 per cent to Rs 863 crore.
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