RBI GETS TOUGH
THE RESERVE BANK of India nod to appointing Amitabh Chaudhary as the next MD and CEO of Axis Bank, after Shikha Sharma had to opt for a hasty exit, comes with a clear underlying message. Banks and their leadership – CEOs as well as boards, need to improve performance and justify their employment. “The boards have been mechanically approving extensions and re-appointments for the top brass,” a market expert said. When the RBI told the Axis Bank board to reconsider reappointing Sharma, the message on performance was clear. Subsequently, the regulator asked Yes Bank CEO, Rana Kapoor to continue until further notice.
One hopes that bank boards will be more proactive now rather than needing the regulator to step in all the time.