Federal Bank gains 6% as RBI approves re-appointment of Shyam Srinivasan

The brokerage firm Motilal Oswal Financial Services said it sees this as a positive development as it addresses a key overhang on the management continuity

Shares of Federal Bank rose 6 per cent to Rs 90.90 on the BSE in intra-day trade on Monday amid heavy volumes after the lender said the Reserve Bank of India (RBI) has approved the re-appointment of Shyam Srinivasan as managing director and chief executive officer (MD and CEO) of the bank for a period of three years, starting from September 23, 2021.

At 12:40 pm, Federal Bank was trading 5.7 per cent higher at Rs 90.50, as compared to a 0.44 per cent rise in the S&P BSE Sensex. It had hit a 52-week high of Rs 92.40 on March