South Indian Bank Shares Rise After Board Shortlists Managing Director, CEO Candidates
The bank will now submit its application to the RBI with the names of the candidates in order of preference.
Shares of South Indian Bank rose the most in over three weeks on Thursday after shortlisting candidates for the positions of managing director and chief executive officer.
The board approved a panel of candidates for the positions of managing director and chief executive officer, according to an exchange filing.
According to the Reserve Bank of India's norms, the bank will now submit its application to the RBI with the names of the candidates in order of preference, seeking approval for the appointment of the positions.
The bank also announced the appointment of General Manager Nandakumar G as the head of inspection and vigilance department;, head of internal audit, and chief of internal vigilance, effective June 1.
The bank's Managing Director and Chief Executive Officer Murali Ramakrishnan opted out of reappointment last month.
Shares of South Indian Bank rose 5.8% to Rs 18.25 apiece, compared to a 0.21% gain in the NSE Nifty 50 as of 10:04 a.m. The stock rose 6.67% intraday, the most in over three weeks since May 12.
The average traded volume so far in the day stood at 3.6 times its monthly average.
Of the five analysts tracking the company, three maintain a 'buy' rating and two suggest a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 10.7%.