Federal Bank Shares Surge on Krishnan Venkat Subramanian's Appointment As New MD & CEO

Federal Bank shares surged on the appointment of Krishnan Venkat Subramanian as its new managing director and CEO.

What Happened: The Reserve Bank of India (RBI) gave its nod to Subramanian’s appointment on July 22, as per the bank’s application submitted on May 6. The disclosure further revealed that Subramanian’s tenure will begin on September 23 and span three years, following the termination of the current managing director and CEO’s term on September 22.

See Also: Suzlon Shares Rocket To Record High As Earnings Beat Estimates

Subramanian’s professional journey includes a significant stint as the Joint Managing Director of Kotak Mahindra Bank Limited, which concluded on April 30.

During his tenure, he was at the helm of Corporate, Banking, Commercial banking, Private Banking, and Asset Reconstruction business. He was instrumental in implementing technological advancements in these sectors and fortifying transaction banking capabilities.

Nomura maintained “buy” call on the stock with a target price of ₹195. The brokerage said the appointment of Subramanian is a positive development and will drive continued re-rating for the stock. The CEO’s appointment would bring the uncertainty around the management succession to an end. Subramanian’s leadership can aid the company’s profitability outlook over the medium term.

Kotak Securities also reiterated “buy” call with a target price of ₹190. The appointment of Manian is a positive for the bank and removes key uncertainty around the bank’s transition.

Price Action: Shares of Federal bank rose 3.04% to ₹198.80 on Tuesday morning.

Read Next: Budget 2024 Live Updates Nirmala Sitharaman To Present The Budget At 11 00