Shares of South Indian Bank Ltd crashed 18% on 30 January after Mr PR Seshadri announced that he is not planning on re-appointment when after the end of his term. 

South Indian Bank has declared that its present Managing Director and CEO, Mr PR Seshadri, will not seek re-appointment when his current term expires. He has decided to step aside in order to devote more time to his personal interests. However, he will continue to serve as CEO until his tenure expires on 30 September 2026.

The bank’s Board of Directors convened on January 29, 2026, to officially evaluate his request. During the meeting, the Board resolved to begin the process of seeking a successor. This entails discovering and shortlisting viable candidates, as well as ensuring that all legal and regulatory procedures are met before making the appointment. Once a suitable candidate has been identified, the procedure will require approvals from both the Reserve Bank of India (RBI) and the bank’s shareholders.

Following this revelation, South Indian Bank’s stock fell sharply, dropping about 19% in today’s trade. The market reacted negatively because investors were concerned about the uncertainty and leadership transition at the top of the bank, resulting in a sharp sell-off and negative sentiment.

South Indian Bank is a private sector bank that provides a wide range of financial products and services, including personal banking, corporate banking, and treasury services. The bank has a strong presence in South India and has expanded its operations into other regions, offering services through a network of branches and ATMs.

At 12:20 pm, the shares of South Indian Bank were trading 13.94% lower at Rs 38.09 on NSE. 

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