RBI Clears R Vijay Anandh’s Appointment as MD and CEO of City Union Bank

RBI Approves Leadership Change at City Union Bank

The Reserve Bank of India has given its formal approval for the appointment of R Vijay Anandh as the next Managing Director and Chief Executive Officer of City Union Bank , signalling a planned leadership transition at the Tamil Nadu–based private lender. The decision comes amid a period of tighter regulatory oversight and evolving risk management expectations in the banking sector.

Tenure and Regulatory Clearance

City Union Bank informed stock exchanges that the approval was granted by the Reserve Bank of India through a communication dated February 9, 2026. Vijay Anandh will take charge from May 1, 2026, for a fixed tenure of three years. As per banking regulations, the appointment will also require approval from the bank’s shareholders at the forthcoming general meeting.

Compensation Structure and Governance

The RBI-approved remuneration for the incoming MD & CEO has been set at Rs2.50 crore per annum, inclusive of all allowances and perquisites. The compensation is structured entirely as fixed pay, reflecting the regulator’s emphasis on conservative executive remuneration practices and alignment with long-term stability rather than short-term risk-taking.

Professional Experience and Internal Succession

With nearly three decades of experience in the banking industry, Vijay Anandh has worked across retail banking, credit assessment, portfolio management and collections. Prior to joining City Union Bank, he held senior responsibilities at RBL Bank, where he worked closely with top management on retail asset strategies. He joined City Union Bank as Executive President in 2023 and was elevated to Executive Director in 2024, making his appointment a case of internal succession aimed at ensuring continuity.

Transition from Existing Leadership

The new appointment follows the completion of the tenure of N. Kamakodi, who has served as MD & CEO since 2011 and is scheduled to demit office on April 30, 2026. The transition reflects a structured succession plan, with the board opting for leadership continuity as the bank navigates regulatory compliance, digital transformation and competitive pressures.

Exam-Focused Points

• The RBI must approve MD and CEO appointments in private sector banks.

• City Union Bank is among India’s oldest private sector banks, headquartered in Tamil Nadu.

• Executive compensation in banks is regulated to align with risk governance norms.

• MD & CEO appointments require subsequent shareholder approval.