Federal Bank stock falls; lender looking for new MD to succeed Srinivasan

Shares of Federal Bank fell 5.25 percent to Rs 154.40 on January 20.

On February 15, CNBC-TV18 reported, citing unidentified people, that Federal Bank has shortlisted two internal candidates along with Kotak Mahindra Bank's KVS Manian to succeed Shyam Srinivasan as the managing director and chief executive officer. Earlier this week, Kotak Mahindra Bank re-designated KVS Manian as the joint managing director.

Follow our market blog to catch all the live action

Srinivasan took charge of Federal Bank in 2010. According to RBI guidelines, a non-promoter CEO can serve for up to 15 years. His current term ends on September 22, 2024.

Federal Bank reported a 25 percent rise in net profit to Rs 1,007 crore for the quarter ended December 31, boosted by a 61 percent jump in other income from a year earlier.

Net interest income (NII) rose 8.48% to Rs 2,123 crore. The bank said its fee income for the quarter rose to Rs 642 crore from Rs 543 crore in the year earlier.

Also Read | Minda Corporation shares hit 52-week high after Motilal Oswal, Kotak MF buy stake

Separately, in a regulatory filing, Federal Bank announced the allotment of shares on the exercise of stock options. A total of 1.6 lakh shares were allotted on February 19 under the ESOS 2017 Scheme.

The Federal Bank stock has risen 22 percent in the past year, underperforming the benchmark Nifty 50, which has gained 25 percent during this period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.