City Union Bank Seeks Nod for New CEO, Pay Revisions in 2026

Introduction to the Postal Ballot

City Union Bank Limited has initiated a postal ballot process, seeking approval from its shareholders on four significant resolutions concerning leadership appointments and remuneration. The bank issued a formal notice on February 27, 2026, outlining the proposals. Shareholders are invited to cast their votes through a remote e-voting platform, with the voting window open from 9:00 a.m. on March 05, 2026, to 5:00 p.m. on April 03, 2026. The outcome of this ballot is crucial for shaping the bank's governance and strategic direction.

A Strategic Leadership Transition

A key resolution involves the appointment of Shri R. Vijay Anandh as the new Managing Director & Chief Executive Officer, effective May 1, 2026. This move is part of a well-defined succession plan, as the tenure of the current MD & CEO, Dr. N. Kamakodi, concludes on April 30, 2026. Shri Anandh, aged 51, is currently the Executive Director and brings 28 years of extensive experience in retail banking, credit underwriting, and risk management. The Reserve Bank of India (RBI) has already approved his appointment for a three-year term, signaling regulatory confidence in his leadership capabilities. This transition is designed to ensure continuity and sustained growth for the bank.

Strengthening the Board with IT Expertise

The bank is also proposing the appointment of Shri K. Subramanian as an Independent Director. This is a special resolution aimed at strengthening the board's expertise in critical modern banking domains. At 61, Shri Subramanian brings over 37 years of experience in the information technology sector, having held the position of Global Head-Delivery Excellence, Governance, Privacy and Business Excellence at Tata Consultancy Services (TCS). His proficiency in IT, cybersecurity, artificial intelligence, and risk management is expected to provide valuable oversight and guidance as the bank navigates the evolving digital landscape. His proposed term is set to end on June 30, 2030, pending shareholder approval.

Proposed Remuneration for the New MD & CEO

Shareholders will vote on the proposed remuneration package for Shri R. Vijay Anandh in his new role as MD & CEO. The total fixed pay is capped at ₹2.50 crore per annum. The structure is designed to be comprehensive, covering salary, allowances, and other benefits, reflecting industry standards for a leadership position of this stature. The detailed breakdown of the annual package is as follows:

Remuneration Adjustments for Top Executives

The ballot also includes resolutions for revising the fixed remuneration for the current leadership, which has received prior approval from the RBI. These adjustments are intended to align their compensation with their responsibilities and market benchmarks.

• Dr. N. Kamakodi (MD & CEO): His annual remuneration is proposed to be revised from ₹2.365 crore to ₹2.61 crore, effective from May 1, 2025.
• Shri R. Vijay Anandh (Executive Director): In his current role, his pay is proposed to be revised from ₹2.0657 crore to ₹2.28 crore, effective from June 24, 2025.

These revisions reflect the bank's performance and the leadership's contribution, while adhering to regulatory guidelines on executive compensation.

Key Dates and Voting Process

To ensure a transparent and accessible voting process, the bank has laid out a clear timeline and procedure for its shareholders. The eligibility for voting is determined by the shareholding status as of the cut-off date of February 20, 2026. The remote e-voting will be facilitated by the National Securities Depository Limited (NSDL).

Analysis: Ensuring Governance and Future-Readiness

The resolutions put forth in the postal ballot highlight City Union Bank's focus on robust corporate governance and strategic planning. The planned leadership succession ensures a seamless transition at the helm, minimizing operational disruption. Appointing an Independent Director with deep technological expertise is a forward-looking move, acknowledging the critical role of digital transformation and cybersecurity in the banking sector. Furthermore, seeking shareholder approval for executive remuneration underscores the bank's commitment to transparency and accountability. The entire process, overseen by an independent scrutinizer, reinforces adherence to regulatory norms and best practices in corporate governance.

Conclusion

The postal ballot is a pivotal event for City Union Bank and its stakeholders. The approval of these resolutions will formalize a key leadership transition, enhance the board's skill set, and align executive compensation with industry standards. Shareholders have until April 03, 2026, to cast their votes on these important matters. The results, expected by April 7, 2026, will finalize the bank's leadership structure and set the stage for its next phase of growth.