Shares of South Indian Bank, a private lender, fell by almost 10% following the Reserve Bank of India’s approval of Mahesh Muralidhar Pai as the new Managing Director and Chief Executive Officer. The stock plummeted to Rs 43.02 on the BSE, marking a decline of 9.86%. By midday, it was trading at Rs 44.23, down over 7%.
The RBI sanctioned Pai’s appointment as MD and CEO for a three-year term starting from October 1, as disclosed in a regulatory filing by the bank. The proposal for his appointment will be presented to the Board of Directors at a meeting scheduled for July 16.
Mahesh Muralidhar Pai, aged 50, currently holds the position of Chief General Manager at Canara Bank, overseeing digital banking and innovation, as per the exchange filing. With almost thirty years of experience in banking, he has expertise in various banking domains such as governance, strategy, treasury, retail banking, and more.
The appointment of Pai requires approval from the shareholders in compliance with the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations. He has led significant initiatives at Canara Bank, including the establishment of the gold loan vertical, and has previously managed one of the bank’s largest zones.
