Fed Bank eyes external CEO
Federal Bank will consider external names as well for the post of managing director and chief executive officer, said the current MD & CEO Shyam Srinivasan at the earnings call on Tuesday. He clarified that the bank will give the names of the candidates by the end of April. “The regulator is not inclined to give a one-year extension.
A formal search process is currently underway. We have two executive directors with exemplary capabilities. The board will also look outside.
We will send in the names by April end or early May," he said. On 5 January, the Reserve Bank of India (RBI) asked the private sector lender to submit a fresh proposal containing at least two names for the position of managing director and chief executive officer. Srinivasan’s three-year term will end on 22 September, when he will complete 14 years as the bank’s MD and CEO, during which he’s credited to have transformed the bank’s operations.
Federal Bank reported a 25% year on year jump in net profit to ₹1,007 crore for the December quarter of fiscal year 2024 from ₹803.6 crore during the corresponding period a year ago. Net interest income or core income grew 8.53% year on year to ₹2,123.36 crore at the end of December quarter. Net interest margin slipped marginally to 3.19% as on 31 December from 3.22% in the previous quarter.
The bank’s advances and deposits book grew 18% each. The bank’s gross non-performing assets (NPA) as a percentage of total assets increased marginally to 2.29% at the end of the December quarter from 2.26% in the previous quarter. Net NPA as a percentage of total assets stood flat at 0.64% at the end of the December quarter.Milestone Alert!
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