Federal Bank Ltd.’s board has begun discussions around succession planning as the current Chief Executive Shyam Srinivasan nears retirement, according to three people with the knowledge of the matter.
The bank is planning to apply for Srinivasan’s extension for another year and, hence, is expected to be around in the role for another two years, the first person quoted above said on the condition of anonymity.
According to the current discussions, the bank is expected to apply for Srinivasan’s extension to the Reserve Bank of India after April 2024 as this is the last time that it can do so, this person added.
Srinivasan’s current term ends in September 2024 when he would complete 14 years as the managing director and CEO. In 2021, the Reserve Bank of India had last approved his reappointment for a period of three years.
According to RBI’s April 2021 guidelines, the post of the MD and CEO or a whole-time director can’t be held by the same incumbent for more than 15 years.
Srinivasan, an engineer by education and an Indian Institute of Management-Kolkata alum, has previously worked at Wipro Ltd., Citigroup and Standard Chartered Bank.
Under his leadership, Federal Bank has grown from being a Kerala-headquartered bank to a lender of national proportion. Under Srinivasan’s tenure, Federal Bank crossed the Rs 1 lakh crore in total business in FY13. The bank crossed the Rs 3 lakh-crore mark in FY22.
As of Sept. 30, Federal Bank’s total advances were Rs 1.92 lakh crore, up 20% year-on-year. Retail advances rose 22% from a year earlier to over Rs 62,000 crore, while loans under the corporate and institutional banking business grew 15% to over Rs 68,000 crore.