The Hindu Business Line : Reconstituted Federal Bank board meets

SUBSEQUENT to the order of the Company Law Board, the board of Federal Bank met in Kochi on Thursday and inducted Mr P. H. Ravikumar, ICICI Bank nominee, as well as Prof A. M. Salim and Mr P. C. Cyriac as independent nominees on the board.

The strength of the board will go up from the current seven to eight when the new Chairman is inducted on May 2, and to nine when the Executive Director, Mr K.S. Harshan, is also given a slot. The high disclosure standards, good corporate governance, and concern for employees and customers will stand the bank in good stead in the immediate future, Mr Harshan said.

The decision to bifurcate the post of Chairman and Managing Director has been kept in abeyance for the moment and the new Chairman, Mr M. Venugopalan, who is currently the Chairman of Bank of India, will take over as the executive Chairman and Managing Director as well, Mr S. Santhanakrishnan, a director on the board said after the meeting.

The board also appreciated the speed with which the CLB settled the controversial issues of the last AGM. The bank would be focusing on core growth strategy, technology and benchmarking of all performance parameters. While the global standards for fee-based income among banks is as high as 25 per cent, in the case of Federal Bank it was still less than 10 per cent.

Regarding the geographical reach of the bank, Mr Harshan said that most Indian banks generated 85 per cent of their business from around 60 centres in the country.

Federal Bank already has a presence in 50-55 per cent of these centres.

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