South Indian Bank shares drop 9% after RBI approves three-year term for new CEO

South Indian Bank shares drop 9% after RBI approves three-year term for new CEO


Shares of South Indian Bank Ltd. plunged over 9% on Wednesday, July 8, marking their biggest single-day decline in three months, even as the lender announced RBI’s approval for the appointment of its next Managing Director and CEO.

The bank informed the exchanges that the Reserve Bank of India (RBI) has approved the appointment of Mahesh Muralidhar Pai as Managing Director and Chief Executive Officer for a three-year term, effective October 1, 2026.

The appointment will be placed before the bank’s board for approval at its meeting scheduled on July 16, following which it will require shareholders’ approval.

Pai, 50, is currently serving as Chief General Manager at Canara Bank, where he heads the digital banking and innovation vertical. He brings nearly three decades of banking experience across strategy, governance, treasury, foreign exchange, retail banking, agriculture, and MSME lending.

During his tenure at Canara Bank, Pai has led several strategic initiatives, including the creation of the bank’s gold loan vertical, and has also headed one of its largest operational zones.

He has prior international experience, having worked at Canara Bank‘s New York branch.

His board-level experience includes serving as a director at Canara Bank Tanzania Ltd., Karnataka State Financial Corporation, and Canara Bank Securities Ltd. He has also represented Canara Bank on industry bodies such as FIMMDA, SWIFT India Domestic Services, and the Secondary Loan Market Association.

The bank described Pai as a leader known for his strategic vision, execution capabilities, integrity, and extensive experience across universal banking.



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