Federal Bank Eyes Kotak Mahindra's KVS Manian for CEO Role

16 Feb 2024 , 10:46 AM

Federal Bank has identified KVS Manian, a director at Kotak Mahindra Bank, as a potential CEO candidate, according to sources reported by CNBC-TV18 on February 15. The bank has also shortlisted two internal candidates for the Managing Director & CEO role.

Federal Bank intends to propose three candidate names to the Reserve Bank of India (RBI) for approval as part of its succession planning. This process is a component of the Kochi-based private lender’s succession plan.

Federal Bank stated to the channel that the board oversees this process in line with their succession plan, emphasizing a thoughtful transition.

The RBI recently declined Federal Bank’s request to extend the tenure of its MD & CEO, Shyam Srinivasan, by one year. Srinivasan, who assumed the role in 2010, was eligible for another year. According to RBI regulations, a CEO can serve for up to 15 years if they are not a promoter. Srinivasan’s current term concludes on September 22, 2024.

Federal Bank reported a 23% increase in consolidated net profit to ₹1,035.42 Crore for the December quarter of 2023-24. This surge was attributed to a significant decrease in provisions and a rise in non-interest income.

On a standalone basis, the bank achieved its highest-ever net profit of ₹1,007 Crore for the quarter, marking a 25% increase. Core net interest income (NII) rose by 8.53% to ₹2,123 Crore, while other income surged by 61% to ₹863 Crore.

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