In a regulatory filing, the bank said Seshadri has decided to pursue personal interests after completing his tenure, which runs until 30 September 2026. He will continue in office until then.
The board said it has initiated the process to identify a successor and will complete the appointment after obtaining approvals from the Reserve Bank of India and shareholders.
The sharp sell-off reflected investor concerns over leadership transition. Seshadri's decision not to seek reappointment comes just two weeks after South Indian Bank posted its highest-ever quarterly net profit for the December 2025 quarter.
Net profit after tax rose 9.5% YoY to Rs 374 crore in Q3 FY25, compared with Rs 342 crore in the year-ago period. Profit before tax stood at Rs 504 crore, up 8.8% YoY. Operating profit increased 10.5% YoY to Rs 584 crore, supported by stable core income and higher other income. Net interest income inched up 1.3% YoY to Rs 881 crore, while other income jumped 18.8% YoY to Rs 486 crore, providing an added boost to profitability.
South Indian Bank is a leading Kerala-based private sector bank with a nationwide presence. It has 948 branches, 2 Ultra Small Branches, 3 Satellite branches, 1143 ATMs and 126 CRMs across India, and a representative office in Dubai, UAE.