Shares of City Union Bank (CUB) soared 10% to Rs 146.50 on the BSE in Thursday’s intraday trade after the Reserve Bank of India (RBI) approved the reappointment of N Kamakodi as the MD and CEO of the bank for three years with effect from May 1, 2023.

The stock was up 5% on heavy trading at Rs 139.95 at 9:20 am. The average over-the-counter trading volume has more than tripled, with 1.4 million shares changing hands on the NSE and BSE. In contrast, the S&P BSE Sensex gained 0.01% to 60,307.

“We hereby inform that, on the recommendation of the Bank’s Board of Directors, the Reserve Bank of India has approved the reappointment of Dr N Kamakodi as Managing Director and Chief Executive Officer of the Bank for a term of three years commencing May 1, 2023,” the bank said in a weekly statement. Three are indicated in the BSE document.

This is a positive development for CUB, especially when RBI recently approved the reappointment of the MD & CEO of a large private bank for 2 years instead of 3 years,” ICICI Securities said in a report.

City Union Bank has underperformed the market over the past six months, falling 26%, while the S&P BSE Sensex has gained 1%.