New Chief Risk Officer Appointed at City Union Bank

Venkatakrishnan S will begin his two-year tenure as Chief Risk Officer on April 1, 2026. This appointment follows the retirement of the current CRO, M. Kalyanaraman.

Board Approves Key Leadership Change

The Board of Directors of City Union Bank (CUB) met on March 23, 2026, to approve this significant leadership appointment. Venkatakrishnan S has been named the new Chief Risk Officer (CRO) for a two-year period, commencing April 1, 2026. He steps into the role as M. Kalyanaraman retires at the end of March 2026.

Role of the Chief Risk Officer

The Chief Risk Officer holds a critical position for a bank's financial health and stability. This role involves overseeing key areas such as credit, market, operational, and compliance risks. For CUB, this appointment is particularly important as banks continue to navigate increasing regulatory scrutiny and a dynamic risk environment. The CRO is vital for maintaining investor confidence and ensuring adherence to regulatory standards.

Bank's Background and Past Regulatory Issues

City Union Bank, established in 1904, is a significant private sector bank with a strong presence, primarily in South India, focusing on retail and MSME clients. The bank has been actively expanding its network and operations.

However, CUB has previously faced regulatory action. In February 2024, the bank was fined ₹66 lakh by the Reserve Bank of India (RBI) for non-compliance issues related to income recognition, asset classification, provisioning, NPAs, and KYC guidelines.

An RBI inspection had noted discrepancies in reported NPAs and a lack of a system for periodic risk categorization. M. Kalyanaraman has served as CRO since April 2023. His retirement signifies a change in CUB's risk management leadership.

Transition and Experience for Risk Oversight

With over 26 years in banking and risk management, Venkatakrishnan S is expected to lead CUB's risk oversight initiatives. This appointment suggests a strategic move towards continuity and leveraging experienced expertise in managing the bank's risks. CUB aims to reinforce its risk framework under the new leadership.

Ongoing Risk Management Focus

While this is a standard leadership transition, City Union Bank's emphasis on robust risk management remains crucial. Past RBI penalties highlight the necessity for strong internal controls and diligent oversight, especially in NPA identification and risk assessment. Investors will be observing how the new CRO strengthens these controls and adapts to the evolving regulatory landscape.

Industry Practice for Risk Management

Major Indian banks, including State Bank of India, Axis Bank, and Karur Vysya Bank, similarly employ dedicated Chief Risk Officers. These roles are essential for maintaining compliance and guiding strategic direction within highly regulated financial sectors. Leadership changes in these critical functions are typically managed to ensure operational continuity and governance stability.

Key Areas to Monitor

Investors will be watching Venkatakrishnan S's strategic priorities and integration into his new role, CUB's progress in addressing the RBI's past concerns regarding NPAs and risk categorization, any future senior management appointments or changes, and the bank's financial performance and compliance adherence in upcoming quarters.