Succession planning at pvt banks is a major issue: RBI on board governance

At a first-of-its kind open house with bank boards next month, Mint Road can be expected to do some plain speaking on long-festering issues of management and ethics

Mint Road’s decision to call for a meeting of the board of directors of state-run and private banks on May 22 and 29 to discuss “issues related to governance, ethics, the role of the boards, and supervisory expectations” needs to be read in the context of several long-standing concerns.

Succession planning at private banks is one hot button issue. On September 9, 2014, the Reserve Bank of India (RBI) made clear that the upper age limit for corner-room occupants in private banks should be 70 years. Yet, much drama unfolded in the race to find successors to both Romesh Sobti