Kerala-based private sector lender, Federal Bank announced that the Reserve Bank of India (RBI) had approved the re-appointment of Shyam Srinivasan as the Managing Director and Chief Executive Officer of the bank till September 22, 2021.
Srinivasan’s present term ends on September 23, 2020.
In a corporate filing, the bank stated, "As required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements Regulations, 2015), we wish to inform you that the approval from Reserve Bank of India has been received on July 16, 2020 for the reappointment of Mr. Shyam Srinivasan as the MD & CEO of the Bank, w.e.f. September 23, 2020 (the completion of the present term of office) till September 22, 2021, along with remuneration as proposed by the Bank."
Srinivasan was first appointed as the Managing Director and CEO of the Federal Bank on September 23, 2010. He has completed a decade in the post through multiple re-appointments.
In June, an RBI discussion paper on ‘governance in commercial banks in India’ had proposed to limit the tenure of the promoters of the bank as Chief Executive Officers (CEOs) and Whole Time Directors (WTDs) to 10 years if the person is from the promoter group and 15 years if he belongs to the non-promoter group.
Going by this policy, Srinivasan will have time till 2025 to continue as CEO. The RBI also proposed to limit the upper age limit for CEO/WTDs of banks at 70 years.
An alumnus of the Indian Institute of Management, Kolkata, and Regional Engineering College, Tiruchirapally, Srinivasan had joined the bank, equipped with the experience of over 20 years with leading multinational banks in India, Middle East, and Southeast Asia. He has significant expertise in retail lending, wealth management, and small and medium enterprises (SME) banking. With his re-appointment, the bank will be able to continue to leverage his deep expertise. Federal Bank announced its unaudited financial results for the quarter ended June 30 last week, with its net profit rising 4.3% to Rs 401 Cr year on year and 33% quarter on quarter.