South Indian Bank faces a reset, again

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Editor's note: Murali Ramakrishnan, the managing director and CEO of South Indian Bank, is no Aditya Puri. Yet, the reaction of the stock market to the Thrissur-headquartered bank’s announcement that he had opted against renewing his contract was as if the much celebrated former head of HDFC Bank had stepped down. South Indian Bank’s shares saw a 17% fall intraday on 29 March, a day after the announcement. The announcement itself did not give away much. “This is to inform that the Board of Directors of the Bank, in their meeting held today, i.e., March 28, 2023, considered the request of Murali Ramakrishnan, Managing Director & CEO, not to offer himself for re-appointment due to personal reasons/family circumstances, on completion of his current term, i.e., up to September 30, 2023,” the bank informed stock exchanges. But going by the markets’ reaction, Ramakrishnan’s exit after just three years in the job was clearly something that investors weren’t expecting. Especially at a time when the Reserve Bank of India prefers to have banks helmed by people who have at least 10 years to give …