South Indian Bank share price plunges over 18%; here is why 

In a filing to the stock exchanges on Thursday, South Indian Bank informed the bourses that its Managing Director and CEO, P R Seshadri, has decided not to seek reappointment after his current term ends on September 30, 2026, opting instead to pursue personal interests.  

As per the exchange filing, the Board of Directors met on January 29 to consider the “request of Mr P R Seshadri, Managing Director & CEO, not to offer himself for reappointment, as he has decided to pursue activities of his personal interest post completion of his current term. He will continue in the office of the Managing Director & CEO till the completion of his current term, i.e., up to September 30, 2026.”  

“The Board further decided to take necessary steps to identify a successor for the position of Managing Director & CEO and further resolved to do the needful to complete the appointment process, including obtaining approval from the Reserve Bank of India and shareholders of the Bank in due course after identification/shortlisting of suitable candidate(s),” the filing added.  

The bank described the move as a planned leadership transition, designed to maintain continuity until a successor is appointed for the MD & CEO role.  

Following the announcement, shares of South Indian Bank plunged up to 18.6% to hit an intraday low of ₹36.03 apiece on the NSE in early trade. The decline marks the steepest one-day drop in the stock’s history.  

A graduate of IIM Bangalore, PR Seshadri assumed charge as MD & CEO of South Indian Bank in October 2023. He previously led Karur Vysya Bank as MD & CEO from September 2017 to March 2020 and has also held senior roles at BFC Bank Limited and Citibank Asia-Pacific, where he served as Managing Director and Head of Sales and Distribution.  

South Indian Bank Q3 FY26 earnings

The bank reported a 1% year-on-year (YoY) rise in standalone net interest income to Rs 881 crore in Q3FY26 from Rs 869 crore in Q3FY25. Non-interest income grew 19% YoY to Rs 486 crore in Q3FY26 from Rs 409 crore in the same period in the previous financial year. 

Profit after tax increased 9% YoY to Rs 374 crore in Q3FY25 from Rs 342 crore in Q3FY25. 

Shares of South Indian Bank were trading 14.82% lower at ₹37.7 apiece on the NSE at 10:02 a.m., while the benchmark Nifty50 was 0.44% lower at 25,307.15.