MUMBAI : Shares of South Indian Bank Ltd plunged as much as 18.6% on Friday, the steepest drop in three months, after the lender said its managing director and chief executive officer will not seek reappointment when his term ends.

The stock fell to an intraday low of ₹36.06, its weakest level since Oct. 20, 2025, before trimming losses to trade about 13% lower at ₹38.50 as of 11:22 a.m. in Mumbai. The benchmark Nifty 50 index was up 0.63% at the time.

Friday’s selloff marked the third consecutive session of declines for the stock, which traded at nearly 8.9 times its average 30-day volume, data compiled by Bloomberg show. Despite the sharp drop, South Indian Bank shares are still up about 1.3% so far this year, compared with a 3.5% decline in the Nifty 50. The bank has a market capitalization of roughly ₹10,141 crore.

The shares came under pressure after the lender disclosed that its MD and CEO, P. R. Seshadri, has decided not to offer himself for reappointment after the completion of his current term on Sept. 30, 2026, citing personal interests.

In a stock-exchange filing, the bank said it will initiate steps to identify a successor and aims to complete the appointment process in line with regulatory requirements, including approvals from the Reserve Bank of India and shareholders.