Federal Bank board in advanced stages for scouting new CEO, says Shyam Srinivasan

Federal Bank reported nearly flat net profit at Rs 906 crore for the quarter ended March 31, according to the exchange filing issued on May 2.

The board of Federal Bank is in advanced stages of searching for a new chief executive officer and managing director (CEO and MD) for the bank, said Shyam Srinivasan, CEO and MD.

“There is a bank board established search panel, and they are in advanced stages. The process is well underway. The board has submitted a long list of names to RBI, including our two senior internal candidates,” Srinivasan said at a post-results press conference.

Earlier, some media reports said that KVS Manian, who recently resigned as the Joint MD and from the Kotak Mahindra Bank's Board, may join Federal Bank as its MD & CEO. They said that Manian could replace Federal Bank's Srinivasan, whose term ends in the last week of September 2024, as the Reserve Bank of India (RBI) has turned down the bank's request to give him a one-year extension.

While stepping down, Manian said that he will pursue other opportunities in the financial services sector.

Bank’s Q4 earnings

Federal Bank reported nearly flat net profit at Rs 906 crore for the quarter ended March 31, according to the exchange filing issued on May 2.

Sequentially, the net profit fell 10 percent from Rs 1,007 crore in Q3FY24, the filing showed. The company also declared a dividend of Rs 1.2 per equity share for FY24.

The bank's net interest income at Rs 2,195.11 core was its highest-ever, recording a jump of 15 percent, while the asset quality improved marginally, the company statement said. The gross non-performing assets improved 23 bps YoY to 2.13 percent, while the net non-performing assets 9 bps to 0.6 percent.