South Indian Bank shares fall 10% amid market crash; RBI approves 3-year term for new CEO

Shares of South Indian Bank Ltd declined about 10 per cent in Wednesday's trade on profit booking after the Reserve Bank of India (RBI) approved the appointment of Mahesh Muralidhar Pai as the bank's Managing Director and CEO for a three-year term, effective October 1, 2026. 

The stock, which is still up around 20% so far in 2026, came under heavy selling pressure on Wednesday. It fell as much as 9.8% to an intraday low of Rs 43.01 from the previous close of Rs 47.67 before settling at Rs 43.70, down 8.33% for the day.

The lender is scheduled to announce its June quarter results on July 16. Its board will also consider a proposal to raise funds through the issuance of debt securities and approve the convening of the bank's Annual General Meeting (AGM). 

"Please note that an agenda for appointment of Mr. Mahesh Muralidhar Pai as the Managing Director & CEO of the Bank will be placed to the Board meeting scheduled to be held on 16th July, 2026 and the approval of the shareholders shall be obtained thereafter in this regard as per the applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations," South Indian Bank said.

The sharp selloff on the counter came a day after Nirmal Bang Institutional Equities felt the bank is nearing an important inflection point in its multi-year transformation, after spending nearly a decade repairing its balance sheet following the corporate asset-quality cycle.

According to Nirmal Bang, the bank has largely completed the heavy lifting and is moving into the next phase of scaling growth from a stronger position, with the franchise now built on tighter underwriting standards, lower concentration risk, improved operating capabilities, and a more granular retail and MSME-led mix.

In the case of the new appointment, Pai, 50, is a banker with close to three decades of experience across governance, strategy, treasury, foreign exchange, retail, agriculture and MSME credit. Presently, he is serving as Chief General Manager at Canara Bank spearheading digital banking and innovation. 

He has handled multiple strategic initiatives of the Bank including setting up of gold loan vertical. He has also headed one of the largest zones of Canara Bank. 

Pai’s professional experience includes a stint in overseas operations of Canara Bank at New York, USA. Amongst other positions, he has served as Director in Canara Bank Tanazania Ltd, and represented the Bank in Fixed Income Money Market and Derivatives Association of India (FIMMDA), Swift India Domestic Services Private Ltd and Secondary Loan Market Association.

Presently, he is also a Director in Karnataka State Financial corporation and Canara Bank Securities Ltd.

"He is recognised for his strategic clarity, execution excellence, integrity, and strong industry relationships with banking and technology partners. He brings in board relevant experience in entire segments of universal banking," South Indian Bank said.