South Indian Bank jumps 8% after lender picks new MD and CEO

Shares of South Indian Bank jumped nearly 8 percent in early trade on August 18 after the lender appointed of a managing director and chief executive.

At 10:35am, the South Indian Bank stock was trading 7.86 percent higher at Rs 22.80 on the NSE.

The Reserve Bank of India has approved the appointment of PR Seshadri as the MD of South Indian Bank with effect from October 1 for a period of three years, according to a notification to stock exchanges. The nod was given by the RBI on August 17. Following the RBI approval, the board will meet to approve his appointment.

Follow our live blog for all the market action

Seshadri has held key roles, including MD and CEO at The Karur Vysya Bank Limited (KVB), various positions at Citibank NA such as the managing director and regional sales and distribution head, managing director and regional head of lending, businesses, and roles encompassing marketing, structured finance, collections, and automobile finance.

Recent developments

South Indian Bank reported a net profit of Rs 202.3 crore for the April-June FY24 quarter on July 20, compared to Rs 115 crore in the corresponding quarter last year.

Also Read: RBI approves PR Seshadri as next MD & CEO of South Indian Bank

The private sector lender’s gross non-performing asset (GNPA) stood at 5.13 percent, down from 5.14 percent recorded in the same quarter last year. Whereas the net NPA (NNPA) of the lender for the quarter stood at 1.85 percent, declining from 1.86 percent on a year-on-year basis. The retail Deposit of SIB has grown by Rs. 5,583 Crore from Rs. 86,460 Crore to Rs. 92,043 Crore, showing an increase of 6 percent on Y-o-Y basis.

Shareholding Pattern

Public holds a 78.56 percent stake in the South Indian Bank. FIIs and DIIs hold the remaining 13.59 percent and 7.85 percent stake in the bank respectively.

Stock Performance

The South Indian Bank stock has gained 21.31 percent over the last six months, compared to a 7.8 percent rise in the Nifty Bank index.

Disclaimer: The views and investment tips expressed by 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.