RBI Seeks Succession Plan From Federal Bank

The Reserve Bank of India has asked the Federal Bank for its succession plans.

The regulator has asked the bank to submit at least two fresh names for the roles of managing director and chief executive officer, according to an exchange filing.

The development comes after Federal Bank approached the RBI, seeking a one-year extension for Shyam Srinivasan, the current MD and CEO of the bank.

The bank wrote to the RBI on Oct. 6 and heard back from the regulator on Jan. 4 in this regard, it said.

NDTV Profit previously reported that the Federal Bank has begun discussions around succession planning as Srinivasan nears retirement.

The current MD and CEO's term ends in September 2024, when he will complete 14 years as the managing director and CEO. In 2021, the Reserve Bank of India had last approved his reappointment for a period of three years.

According to RBI's April 2021 guidelines, the post of MD and CEO or a whole-time director can't be held by the same incumbent for more than 15 years.