Federal Bank CEO Says Names Of Potential Successors Will Be Sent To RBI In 2-3 Weeks

Federal Bank Ltd. has plans to submit the names of prospective candidates for the position of managing director and chief executive officer in the next two to three weeks to the Reserve Bank of India, according to Shyam Srinivasan, the current MD and CEO.

In a post-results analyst call, Srinivasan said on Thursday that the board-appointed panel has gathered a "good" slate of candidates, both internally and externally. Once the processing is done, they will share the names with the central bank, he said.

"...And once it goes into RBI, the process works, and they'll do the due diligence," Srinivasan said while responding to an analyst's question.

Srinivasan said it would take between three and four months for clarity on who would succeed him. "...But at this point in time, it's going well," he said.

The Federal Bank’s steps towards succession planning come as Srinivasan's term ends in September, when he will complete 14 years as the lender’s top boss.

On Jan. 5, RBI asked the bank to submit at least two fresh names for the MD and CEO posts. Responding to media queries in a Q3 FY24 earnings call, Srinivasan said the RBI was not inclined to offer a one-year extension for the position.

NDTV Profit previously reported that KVS Manian, the veteran banker of Kotak Mahindra Bank Ltd., may be tapped as Federal Bank's next CEO. He remains the frontrunner along with Shalini Warrier and Harsh Dugar, the bank's executive directors.

On Tuesday, Manian stepped down from Kotak Mahindra Bank and ceased to be its joint managing director to pursue other opportunities in financial services.

Federal Bank's standalone net profit stood at Rs 906 crore for the quarter-ended March, according to an exchange filing on Thursday. Sequentially, the profit was down 10%. Net interest income, or core income, rose by 15% to Rs 2,195 crore.