South Indian Bank shares tank over 15% after MD & CEO Seshadri exit plan

Stock plunges after lender says managing director and chief executive officer P R Seshadri will step down in September and not seek reappointment

Thrissur-based South Indian Bank’s shares plummeted over 15 per cent on Friday after the bank disclosed that its managing director and chief executive officer (MD & CEO) P R Seshadri has decided against seeking reappointment and will step down from the position at the end of his term in September.

 

Seshadri has decided to pursue activities of personal interest post completion of his term, the bank said.

 

Additionally, the bank disclosed to the exchanges that its board has decided to take the necessary steps to identify a successor for the position of MD & CEO and will do the needful to complete the appointment process, including obtaining approval from the Reserve Bank of India and the bank’s shareholders, in due course after identification and shortlisting of suitable candidate(s).

 

 

The bank’s share price stood at ₹37.58 at the close on Friday on the BSE, down 15.11 per cent from the previous day’s close.

 

Seshadri took charge as the bank’s MD & CEO in October 2023. An electrical engineer from the Delhi College of Engineering and a postgraduate in management from the Indian Institute of Management, Bangalore, he has previously served as MD & CEO of Karur Vysya Bank. His earlier roles include MD and regional sales and distribution head at Citibank N.A., Asia Pacific, Singapore, and MD and regional head of lending businesses at Citibank N.A., Asia Pacific, Singapore, among others.

 

In Q3 FY26, South Indian Bank reported a 9 per cent year-on-year (YoY) increase in net profit to ₹374 crore as net interest income (NII) was flat and provisions rose. Its net interest margin (NIM) stood at 2.86 per cent, up 6 basis points (bps) from the previous quarter but down 33 bps from the same period last year. Its asset quality improved, with gross non-performing assets (NPAs) at 2.67 per cent and net NPAs at 0.45 per cent.

 

Its advances grew 11 per cent YoY to ₹92,544 crore, while deposits rose 12.16 per cent YoY to ₹1.18 trillion at the end of Q3 FY26.