InvestorQ : What is the new stipulation of the RBI on tenure of bank CEOs? Do you see it impacting Kotak Bank, ICICI Bank and HDFC Bank?
Mitali Bhutta made post

What is the new stipulation of the RBI on tenure of bank CEOs? Do you see it impacting Kotak Bank, ICICI Bank and HDFC Bank?

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1 week ago
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On Monday 26 April, the RBI stipulated that private bank CEOs and Managing Directors will be only allowed a maximum tenure of 15 years. This will be the outer limit for promoter CEOs. This looks more like a reaction to the Yes Bank case last year and could a Kotak Bank. Tenure will be limited to 12 years with extension up to 15 years at the discretion of RBI.

As I said earlier, this restriction is essentially intended at bank CEOs who are also promoters like in the case of Kotak Bank and Bandhan Bank. Non-promoter CEOs can offer themselves for re-appointment after the completion of the 15-year term, while promoter CEOs cannot. RBI has given banks window till 01-Oct to comply, although it may actually be fairly complex.

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