Federal Bank has reportedly shortlisted Kotak Mahindra Bank's Director KVS Manian as a Chief Executive Officer (CEO) candidate. According to sources, the bank has listed two internal candidates for the Managing Director (MD) and CEO roles. The bank is expected to submit three names to the Reserve Bank of India (RBI) for approval. The process is part of the succession planning at the Kochi-headquartered bank.
“This process is overseen by the board in accordance with our succession plan,” Federal Bank told CNBC-TV18. The bank added that the process has commenced and it is committed to ensuring a thoughtful transition.
#FederalBank has shortlisted #KotakBank director KVS Manian as CEO candidate & two internal candidates for MD & CEO role: Sources
This process is overseen by the board in accordance with our succession plan, says Federal Bank to CNBC-TV18 pic.twitter.com/aUy72Z5WUp— CNBC-TV18 (@CNBCTV18Live) February 15, 2024
Last month, the RBI rejected a plea from the Federal Bank to extend its MD and CEO Shyam Srinivasan's tenure for one year.
Srinivasan, who took over the Aluva-based private sector lender in 2010, was eligible for an additional year. According to RBI guidelines, a CEO can stay with a bank for 15 years if they are not a promoter. His current term ends on September 22, 2024.
“This request was made in the context of the Reserve Bank of India’s permissible limit of 15 years on the term of an incumbent MD & CEO. (Mr. Srinivasan has been the bank’s MD & CEO since 2010),” Federal Bank said in a statement.
(Edited by : Ajay Vaishnav)
First Published: Feb 15, 2024 8:07 PM IST
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