South Indian Bank shares tank 18%, most on record, on CEO not seeking reappointment

Shares of South Indian Bank Ltd. fell as much as 18% on Friday, January 30, on news that it Managing Director and CEO PR Seshadri will not be seeking re-appointment once his current term ends. This is the biggest single-day fall on record for the stock.

In a board meeting held on January 29, Seshadri informed the board of his decision to step down to focus on personal interests. He will continue in his role until September 30, 2026, the conclusion of his current term.



The board said it will begin the process to identify a successor, including shortlisting suitable candidates and completing the necessary approvals from the Reserve Bank of India and the bank's shareholders before finalising the appointment.

This marks a planned leadership transition for the bank, ensuring continuity until a new MD & CEO is appointed, the bank said in a filing.

South Indian Bank reported a 1.3% growth in its Net Interest Income (NII) for the December quarter, while its net profit went up by 9.5% from the same quarter last year.

Gross NPAs for the quarter improved to 2.67% from 2.93% last quarter, while Net NPAs improved to 0.45% from 0.56% in the September quarter.

Shares of South Indian Bank are trading 17.4% lower in Friday's trading session at ₹36.56. This is the biggest single-day fall for the stock since its IPO back in 2006.