The Reserve Bank of India (RBI) has approved the appointment of Shyam Srinivasan, country manager for consumer business, Standard Chartered Bank, to be the next managing director and chief executive office of private sector entity, Federal Bank.
Though , the bank’s MD & CEO M Venugopalan retired on July 31, Srinivasan is expected to join the bank in September 2010.
Three names including Srinivasan were empaneled for the post of CEO by the bank’s board, . The board sent the list to RBI in the first week of July. The Federal was preferring Srinivasan, but ultimately it was the RBI’s prerogative to take a call on that, sources had told FE.
Analysts expect that with the appointment of Srinivasan, Federal Bank would more focus on retail banking. The bank is also in race fir taking over some other small private sector banks.
Also there were rumours that IDBI Bank is eyeing for taking over Federal bank.However Venugopalan had strongly denied this.
“Not even in our dream this has been visualised. A bank like this would never be allowed to to be taken over. We will rather aquire other banks. But there should be good buys,” he had told FE.
Meanwhile a top official at Federal Bank said that IDBI Fortis Life Insurance -a joint venture among IDBI Bank, Federal Bank and Dutch major Fortis-.will soon be renamed as IDBI Federal Bank .
The bank reported a net profit after tax of Rs 131.8 crore for the quarter ended June 2009, as against Rs 136.3 crore same time last year. NIIs were up to Rs 413 crore from Rs 290 crore.