As a board-driven bank, Indian Bank will have continuity in terms of strategies and medium and long-term plans even though there is a change in the position of MD & CEO, said M K Jain, the outgoing MD and CEO of the bank. He will be joining IDBI Bank in the first week of April, since financial year closure is going on in the bank.
Speaking to analysts about the change in management today, he said that while the change of guard may result in some course correction, there will not be a larger and major impact as far as the bank's future and strategy are concerned.
"Top management is not consisting of only MD and CEO, the EDs and the board are still continuing, who are part of the strategies," he said. His assurance comes in the backdrop of the declining share price of Indian Bank after the government's decision go swap the MD and CEO of Indian Bank with MD and CEO of IDBI Bank.
From media reports it appears that the government aims to give longer tenure at the management of IDBI Bank, to take care of the bank and to draw the long-term strategies. He said that his tenure in Indian Bank would have ended in November, 2018, even if he continued in the position. He also denied there was any proposal to merge Indian Bank with IDBI Bank, saying nothing is on the table related to it. According to reports, Indian Bank has been the best performing stock over the last 12 months in India.