RBI’s Private Bank MD, CEO Tenure Cap Impact: Axis Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
The Reserve Bank of India in its notification yesterday has capped the tenure of Managing Director/Chief Executive Officer/Whole-time Director at 15 years and for Promoter MD/CEO at 12 years.
Under special circumstances and at the discretion of the RBI, the term for Promoter CEO may be extended up to 15 years.
These rules apply to private lenders, small finance banks and wholly-owned subsidiaries of foreign banks.
Banks such as HDFC Bank Ltd., ICICI Bank Ltd., and IndusInd Bank Ltd. had a change at the helm in the recent past.
However, banks like Kotak Mahindra Bank Ltd., DCB Bank Ltd., City Union Bank Ltd., Federal Bank Ltd., and RBL Bank Ltd. have long-running tenures (plus 10 years) of the current MDs.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.