KOCHI: Kerala-headquartered Federal Bank on Saturday said it started the search for a new managing director & CEO after the Reserve Bank of India (RBI) turned down the private bank's request for a one-year extension for the incumbent MD & CEO Shyam Srinivasan.
On October 6 last year, the Federal Bank had written to the RBI seeking a one-year extension for Shyam Srinivasan as MD & CEO following the expiry of his current three-year term on September 22, 2024.
"This request was made in the context of the RBI's permissible limit of 15 years on the term of an incumbent MD & CEO," Federal Bank said, in a communique to the stock exchanges.
Srinivasan has been the bank's MD & CEO since 2010.
However, on January 4 (Thursday), the bank received a communication from the RBI asking it to submit a fresh proposal containing a panel of at least two fresh names for the appointment as its MD & CEO. The RBI said a new name to lead the Federal Bank is after taking into consideration the "longer-term requirements of the bank".
The Federal Bank said at its meeting on January 5 (Friday), that the bank's board of directors has taken the RBI's letter on record and will proceed accordingly.