RBI seeks at least two names from Federal Bank for MD appointment

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Reserve Bank of India has sought at least two new names from Federal Bank for appointment as MD and CEO following the end of incumbent Shyam Srinivasan’s current three-year term in September 2024.

Federal Bank had on October 6, 2023, had approached the central bank seeking a one-year extension for Srinivasan as the MD and CEO of the bank post September 22, 2024. As per regulatory norms, the post of MD and CEO or a whole-time director at a private sector bank has a cap of 15 years.

The request was made in the context of the Reserve Bank of India’s permissible limit of 15 years on the term of an incumbent, the bank notified the exchanges. Srinivasan has headed Federal Bank since 2010.

“In this connection, the bank is advised to submit a fresh proposal containing a panel of at least two fresh names, in order of preference, for appointment as MD and CEO of the bank having regard to the likely tenure of the candidate and the longer term requirements of the bank,” RBI said in its letter to the bank on January 4, 2024.

Federal Bank said that in its meeting on January 5, 2024, the board of the bank took RBI’s letter “on record” and the bank will “proceed accordingly”.