CSB Bank on Saturday said its managing director and chief executive C VR Rajendran has decided to opt for early retirement on health grounds, and the lender will set up a committee to find a successor.

“This is to inform you that the bank's board in its meeting held on January 8, 2022, considered and accepted the request of C VR Rajendran to take an early retirement from the position, to take care of his health under the advice of his physicians,” CSB Bank said in a regulatory filing.

The board has further requested Rajendran to continue in office till March 31, 2022, it said.

Rajendran has held the position of MD & CEO since December 9, 2016 and the current term is up to December 8, 2022.

"The board further decided to constitute a search committee comprising the chairperson of the Nomination and Remuneration Committee and two members of the board, to identify and evaluate candidates, from within or from outside, for the position of Managing Director & CEO," the bank said in the filing.

Rajendran said: “The agenda with which I came to the Bank is already completed. I did not want to take one more term. I wanted to retire with this term. That was the plan originally.  

“My agenda is completed. The next agenda is to take the bank to the next orbit. I am not the right person for it. Let the new management takeover. Recently, I developed some health-related issues...I have committed (to the board) that I will definitely be available up to March 2022.” 

Over the last five years, the bank’s profitability has improved, with return on assets crossing 1.5 per cent and return on equity nearing 18 per cent, there has been a substantial reduction in bad loans and improvement in provision coverage ratio, he added. 

The board also decided to appoint an independent executive search firm in this connection to expedite the succession process, it said further.

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