SBI shares fall 16.63% after board of directors consider Murali Ramakrishnan's request for re-appointment

Shares of South Indian Bank fell sharply on Wednesday after the board of directors of the lender considered the request of managing director and chief executive officer Murali Ramakrishnan not applying for an extension of his tenure. The stock was 16.63 per cent to hit a day low of 13.79 over its previous close of Rs 16.54. At today's low price of Rs 13.79, the scrip traded 36.74 per cent lower than its 52 week high of Rs 21.80, a level seen on December 15, 2022. It was 89.68 per cent higher than its one-year low of 7.27, hit on June 20 last year. The counter has lost 24.42 per cent on a year-to-date basis.

Around 89.49 lakh shares changed hands today, which was more than thrice compared to the two-week average volume of 27.68 lakh shares. The turnover on the counter was at Rs 12.78 crore, with a market cap of Rs 2,986. 34 crore are at the end of the day. There were 12,48, 808 sell orders against buy orders of 8,04, 602 shares.

This is to inform that the board of directors of the bank held their meeting today, i.e. On March 28, 2023, considered the request of Mr. Murali Ramakrishnan, the managing director CEO, not to offer himself for re-appointment due to personal reasons family circumstances, on completion of his current term, i.e. The bank stated in an exchange filing that it would be up to September 30, 2023.

The search committee constituted by the board will identify and evaluate candidates for the position of managing director and CEO.

The stock was last seen trading higher than the 200 day moving averages but lower than the 5 day, 20 day, 50 day and 100 day moving averages. The 14 day relative strength index RSI came at 24.54. A level below 30 is considered oversold, while a value above 70 is considered overbought. The company's stock has a price-to- equity P E ratio of 4.85.

South Indian Bank has an average target price of Rs 20, Trendlyne data shows a potential upside of 38.41 per cent. The stock has a one-year beta of 0.79, indicating low volatility.

The lender is a major private sector bank headquartered in Thrissur in Kerala, with 933 branches, four service branches and 18 regional offices spread across India. The bank has also set up more than 1,200 ATMs and 120 cash deposit machines.

South Indian Bank reported a net profit of Rs 102.75 crore in the December 2022 quarter of FY 23 against a loss of Rs 50.31 crore during the corresponding period of the previous year.

Indian equity benchmarks traded higher in early trade today, led by gains in automobile, financials, consumer goods and metal stocks.