After RBI caps chiefs’ tenure at 15 yrs, three private banks may start search for next CEOs
Analysts said the RBI move is a reaction to the Yes Bank crisis.
Synopsis
Bankers said the central bank’s move could hurt stability at small and medium private sector banks that require strong leadership and an understanding of the business to stand out in a competitive lending business.
Long-serving chief executive officers (CEOs) at DCB Bank, RBL Bank and Federal Bank will now have to focus on succession planning after the regulator this week capped their tenures at 15 years.
DCB Bank CEO Murali Natrajan has completed 12 years in the job and got a year’s extension this month. Federal Bank CEO Shyam Srinivasan will complete 11 years in September when his second consecutive one-year extension ends.
DCB Bank was last trading 0.22 per cent lower at Rs 92.35 on the BSE
Share price of DCB Bank edged marginally lower on Thursday, April 22, a day after the private bank announced that it acquired a minority equity stake of around nine per cent in a fintech NBFC Techfino Capital Limited. On Thursday, DCB bank opened at Rs 92.55, touching an intra day high of Rs 92.55 and an intra day low of Rs 90.55, in the trading session so far. According to a statement shared by the new generation private sector bank, Techfino Capital uses a technology platform to offer customised consumer loans in the healthcare and education sectors. (Alson Read: DCB Bank Acquires 9% Stake In Non-Banking Financial Company Techfino Capital
Currently, DCB Bank has a total of 347 branches across the country
New generation private sector bank- DCB Bank Limited, announced on Wednesday, April 21, that it acquired a minority equity stake of approximately nine per cent in a Bengaluru-based fintech non-banking financial company (NBFC) - Techfino Capital Private Limited. DCB Bank is a listed firm on stock exchanges- BSE and NSE. According to a statement released by DCB Bank, the NBFC uses a modern technology platform to offer customised consumer loans in the healthcare and education sectors. Techfino Capital is operational in major metro cities and tier-2 cities across the country.