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Federal Bank seeks to extend CEO’s term, Q4 net profit rises 59%

The Times of India logo The Times of India 17-05-2021 Mayur Shetty
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Mumbai: Federal Bank has sought permission from the RBI for reappointment of Shyam Srinivasan as MD and CEO of the lender for another three years.

The Kochi-headquartered bank reported a net profit of Rs 478 crore for the quarter ended March 2021, an increase of 59% over Rs 301 crore posted in the year-ago period. The bank reported a net profit of Rs 1,590 crore for fiscal year 2021 — an increase of 3% from Rs 1,542 crore in FY20.

The bank’s gross advances reached Rs 1.35 lakh crore as of March 2021 from Rs 1.24 lakh crore as of March 2020 — a growth of 8.6%. Retail advances grew by 18.6% t Rs 44,910 crore as of March 2021 from Rs 37,877 crore in March 2020. Growth in retail was driven by gold loans, which rose 70% to Rs 15,816 crore as of March 2021.

Srinivasan, who has been with the bank for over a decade, will complete his current term in September this year. Srinivasan said that the bank has sought RBI’s permission for a fresh term. On being asked if he is available for another term, “I am eligible and I am willing and so is the board,” he said.

Last year, the central bank had approved the reappointment of Srinivasan as MD & CEO, for a year up to September 23, 2021. Last month, the RBI revised its norms to cap the tenure of the CEO of a bank at 12 years, which can be extended by the central bank to 15 years. It also placed an upper age limit of 70 for bank CEOs. This gives Srinivasan room for a 2- to 5-year extension.

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