Investor confidence shaken as South Indian Bank appoints new chief executive

Market participants reacted negatively on Wednesday after South Indian Bank announced that the RBI had approved the appointment of Mahesh Murli Dhar Pai as its new Managing Director and CEO. The bank’s shares fell close to 10 percent, sliding to a day‑low of ₹43.02 on the BSE. By mid‑day the price steadied around ₹43.53, still reflecting an 8.8 percent drop.

The appointment, effective from 1 October for a three‑year term, will be taken up at the board meeting scheduled for 16 July. The move also requires consent from shareholders per the Companies Act and SEBI listing requirements.

Pai, aged 50, currently works as Chief General Manager at Kenra Bank, where he manages digital banking and innovation. His three‑decade career includes stints in corporate governance, treasury, foreign exchange, retail and agricultural lending, and he has driven several strategic initiatives such as the launch of a gold‑loan vertical.