Federal Bank has recently submitted three names to the Reserve Bank of India (RBI) for the coveted position of chief executive officer (CEO). Among these nominees is KVS Manian, a former deputy managing director at Kotak Mahindra Bank. Additionally, the bank is considering two internal candidates: Shalini Warrier and Harsh Dugar, both executive directors within the organization.
This development has piqued interest in financial circles, particularly in light of Manian’s recent resignation from Kotak Mahindra Bank in April. Manian’s departure, attributed to a desire to explore other opportunities within the financial sector, has fueled speculation about his potential candidacy for the CEO role at Federal Bank.
The bank’s stock price has reacted positively to this news, witnessing a 3.08 percent increase to reach Rs 172.5 on the Bombay Stock Exchange (BSE). At its peak, the stock surged to a 52-week high of Rs 173.35 before experiencing a slight pullback.
Federal Bank’s succession planning process has been underway for some time, with the board overseeing the transition in accordance with established protocols. The significance of this move was underscored earlier in January when the RBI declined Federal Bank’s request for an extension of the tenure of its current MD and CEO, Shyam Srinivasan, by another year. This decision has added further impetus to the bank’s efforts to identify a suitable successor.