Manappuram Finance Inducts the Daughter of the CEO as Executive Director in the Succession Plan
Exciting news from Manappuram Finance! The gold loan company has taken a major step in its succession planning by inducting Sumitha Jayasankar, daughter of CEO V.P. Nandakumar, as an executive director on the board.
As Nandakumar approaches 70 years old, RBI rules mandate that he must step down as CEO in less than two years. With this in mind, Nandakumar has been working on a succession plan, with the goal of promoting internal candidates as the next CEO.
And it looks like Jayasankar is the front-runner for the role! A gynaecologist by profession, she has been groomed to take over from her father and has already been actively involved in the business. Nandakumar explained in an earnings call, “My daughter has taken up the growth of non-gold products to start with, vehicle finance now. She has been appointed as an executive director and is actively involved in the business.”
While the final decision will be made by the board, this move to appoint Jayasankar is seen as a way to satisfy both the regulator and the board. But, as one industry observer points out, “Only time will tell whether she will be able to fit in with the current management.”
In other news, Manappuram Finance has been facing some challenges, with profitability under pressure due to increased competition. The December quarter earnings showed a decline in assets under management and reduced customer acquisition and gold holdings.
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