CSB Bank MD & CEO Rajendran decides to take early retirement on health grounds

C.VR. Rajendran, Managing Director and Chief Executive Officer (MD & CEO), CSB Bank, has decided to take early retirement to take care of his health under the advice of his physicians. Mr. Rajendran will continue to lead the Bank till March 31, 2022.

Mr. Rajendran has been holding the position of Managing Director & CEO since December 9, 2016, and the current term is up to December 8, 2022.

His decision to move on from the post of Managing Director & CEO has been approved by the Board of Directors in a meeting held today. The Board decided to constitute a search committee to identify and evaluate candidates from internally or externally for the position of Managing Director & CEO. It has been decided to engage an independent executive search firm in this connection.

Mr. Rajendran is instrumental in turning around CSB Bank. Under his leadership, the Bank registered an impressive performance and returned back to the path of profitability in Q1FY20, after incurring losses for many consecutive quarters.

Mr. Rajendran was instrumental in bringing Rs 1,208 crores of primary capital to CSB Bank from FIH Mauritius Investments Ltd (a subsidiary of Fairfax India Holdings Corporation). He was also the key driver in spearheading CSB Bank through a successful initial public offering which was oversubscribed 87 times.

Mr. Rajendran has ensured the effective implementation of a slew of sustainable growth strategies, which included healthy prudential parameters such as risk assessment, business expansion with a firm eye on the bottom line, reducing the NPAs, moving to the verticalised business model, and turning the underperforming bank to a new age agile profit-making entity.

Mr. Rajendran was very successful in introducing senior and dynamic management professionals into the newly formed verticalised business model. He also set out very good regulatory compliance standards and internal processes.

The Bank has shown overall excellence especially in terms of improved profitability, balance sheet/risk management, NPA reduction, building provisioning buffers and expanding its markets, especially in niche areas and select locales.

CSB Bank generates one of the highest NIMs in the Indian Banking industry at 5.1 per cent. The Bank is in a very strong financial position as far as profitability (RoA of 2.02 per cent and RoE of 22.96 per cent in Q2FY22), capital adequacy (20.12% as of September 30, 2021), provision coverage (PCR 73 per cent as of September 30, 2021) and liquidity (LCR of 170 per cent as on September 30, 2021) are concerned.

The CASA mix is at 34.5 per cent as of December 31, 2021, growing at an impressive 22 per cent YoY. Non-Gold Advances have grown at a robust 21 per cent YoY. Gold loan, the chief engine of asset growth in the previous financial year, is showing positive QoQ growth in Q3FY22. The Board is very much confident that the Bank will build on the good work done by Mr. Rajendran.