RBI clears Mahesh Murli Dhar Pai as MD & CEO, South Indian Bank stock slides

The Reserve Bank of India gave its nod to Mahesh Murli Dhar Pai’s elevation to Managing Director and Chief Executive Officer of South Indian Bank, prompting a sharp sell‑off in the lender’s equity. On the Bombay Stock Exchange, the shares slumped 9.86 percent to a intraday low of ₹43.02 before recovering slightly to trade near ₹43.53, down about 8.8 percent by 2:40 p.m.

The RBI approval, effective from 1 October for a three‑year period, will be formally presented to the board on 16 July. Subsequent shareholder approval is mandatory under regulatory norms.

Pai, who heads the digital banking and innovation division at Kenra Bank as Chief General Manager, brings nearly 30 years of banking expertise spanning strategy, treasury, FX, retail, agricultural and MSME credit. He also chairs the boards of Karnataka State Financial Corporation and Kenra Bank Securities Ltd.