Currently an Executive Director at Punjab National Bank, Kumar is poised to succeed SL Jain, who will retire next month. The FSIB, which serves as the headhunter for top positions at state-owned banks, conducted interviews with 15 candidates before finalizing Kumar's name.

"Keeping in view their performance in the interface, overall experience and the extant parameters, the Bureau recommends Shri Binod Kumar for the position of MD & CEO in Indian Bank", the FSIB statement said.

This recommendation comes after the Reserve Bank of India raised reservations earlier this year about the previously selected candidate, Asheesh Pandey. As a result, the FSIB initiated a fresh selection process to identify a new nominee.

The final approval for Kumar’s appointment now rests with the Appointments Committee of the Cabinet, chaired by Prime Minister Narendra Modi.

The FSIB, led by Bhanu Pratap Sharma, former Secretary of the Department of Personnel and Training, comprises financial veterans including Animesh Chauhan, Deepak Singhal, and Shailendra Bhandari.

Shares of Indian Bank are slightly off the highs of the day after having surged as much as 12% earlier. The stock is currently trading 6.8% higher at ₹567.7.

At its peak of ₹598 for the day, the stock was nearing its 52-week high of ₹632. So far in 2024, shares of the state-owned lender have risen by 35%. Following Monday's gain, Indian Bank's market capitalization stands at just below ₹77,000 crore.