South Indian Bank - RBI Approval For Appointment Of PR Seshadri As MD, CEO A Key Positive: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.The Reserve Bank of India has approved the candidature of Mr PR Seshadri (excluding Managing Director and Chief Executive Officer of Karur Vysya Bank Ltd.) as MD and CEO of South Indian Bank Ltd. for three years with effect from October 01, 2023. In our view, Mr. Seshadri was instrumental in putting new-age lending practices, overhauling risk architecture and transforming HR practices at Karur Vysya Bank during his term (September 2017-March 2020), a time when the banking system was undergoing severe profitability pressure due to corporate asset quality cycle. We believe the ongoing transformation journey at South Indian Bank, initiated by incumbent MD and CEO, Mr. Murali Ramakrishnan, should get accelerated. South Indian Bank trades at an inexpensive ~0.65 times FY25E adjusted book value. We raise our target multiple from ~0.7 times to ~0.8 times and our target price to Rs 28 (versus Rs 25). Maintain 'Buy'.Key risk: a possible lack of seamless MD and CEO transition and higher-than-expected stress formation at the bank..Click on the attachment to read the full report:.Peace At Murugappa Group.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

South Indian Bank - RBI Approval For Appointment Of PR Seshadri As MD, CEO A Key Positive: ICICI Securities

Maintain 'Buy' with target price raised to Rs 28.

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