South Indian Bank shares crash up to 19% to three-month low as CEO doesn’t seek reappointment

South Indian Bank share price

• South Indian Bank shares dropped 19% after CEO PR Seshadri announced his exit.
• Seshadri will remain CEO until September 30, 2026
• Bank board to begin search for new CEO and seek RBI, shareholder approval

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The shares of South Indian Bank crashed nearly 19 percent on January 30 after the lender announced that its Managing Director and CEO PR Seshadri is not seeking a reappointment after the completion of his ongoing term.

The shares of the bank dropped to Rs 36.03 apiece, the lowest level seen by the stock since October 20 last year. This is also the sharpest single-day drop recorded by the stock on record, CNBC-TV18 reported.

South Indian Bank CEO PR Seshadri not seeking reappointment:

South Indian Bank on January 29 announced that its board during its meeting considered the request of the CEO to not offer himself for reappointment, as he has decided to pursue activities of his personal interest, after the completion of his current term.

The lender added that he will continue in the office of the Managing Director & CEO till the completion of his current term i.e., up to September 30, 2026.

South Indian Bank to look for new CEO:

South Indian Bank's board has decided to take necessary steps to identify Seshadri's successor for the position of Managing Director & CEO.

The lender said that it is further resolved to do the needful to complete the appointment process, including obtaining approval from Reserve Bank of India (RBI) and shareholders of the Bank in due course after identifying and shortlisting  the suitable candidate.

South Indian Bank share price:

South Indian Bank shares have gained more than 25 percent in the past six months, and over 46 percent in the past one year.

The stock's P/E ratio currently stands at 8.33.

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