Hirst pips McPhee for Bendigo & Adelaide top job

The Bendigo & Adelaide board has picked the head of retail banking, Mike Hirst, as the new managing director and chief executive officer.

Hirst, 51, will start in his new role on July 2. He replaces long-serving Rob Hunt, who is stepping down.

The other strong internal candidate for the job, head of partner advised banking Jamie McPhee, was not helped by the failure of one of the bank's third-party relationships amid allegations of fraud.

The bank moved to have receivers appointed to Australian Motor Finance in January, after uncovering irregularities at the company.

Bendigo & Adelaide has alleged that a fraud occurred that involved 700 fake car loans worth $12 million.

The bank has moved to overhaul its third-party financing business, changing its systems to have greater oversight of end customer relations.

Hirst joined the bank in 2001 after working at Colonial State Bank, where his roles included general manager treasury, head of funding and risk management, and head of treasury marketing and sales.