CSB Bank CEO and MD Rajendran to retire early on health grounds

Rajendran, whose term was due to end only on December 8 this year, has reduced his term till March 31.

“This is to inform you that the Board of the Bank in its meeting held on 8th January, 2022 has considered the request of CVR Rajendran to take early retirement from the post and has accepted to take care of his health under the advice of his doctors. took.” The bank said.

Following the resignation, the board has decided to set up an independent executive search committee to identify the successor.

“The Board decided to constitute a Search Committee to identify and evaluate internal or external candidates for the post of Managing Director and CEO. It has been decided to engage an independent executive search firm in this regard,” the press release said.

Rajendran was appointed at the helm of CSB Bank in 2016, when the Reserve Bank of India allowed billionaire Prem Vatsa-owned Fairfax Holdings to take a 51% stake in the bank, formerly known as Catholic Syrian Bank .

During his tenure, the bank saw capital inflows worth 1,208 crore from FIH Mauritius Investments Limited (a subsidiary of Fairfax India Holdings Corporation). the bank also raised 500 crore through an initial public offering, which was subscribed 87 times.

Prior to his current role, Rajendran was holding the position of Chief Executive Officer of the Association of Mutual Funds in India. He has held other key positions such as the Chairman and Managing Director of Andhra Bank and Executive Director in Bank of Maharashtra.

The CSB has been at loggerheads with the management and the employees over non-implementation of pay revision. While CSB Bank has told its unions that it will implement the wage agreement concluded between the Indian Banks Association (IBA) and the unions, it did not give its consent to the IBA to negotiate with the unions on its behalf.

After incurring losses for several consecutive quarters under Rajendran, CSB Bank returned to profits in the first quarter of FY20. During the second quarter of FY 2022, the bank registered a growth of 2% in net profit 118.57 crore in the second quarter ended September. The Kerala-based private sector lender had reported a net profit of 68.90 crore in the corresponding quarter of the last financial year.