Upping corporate governance premium in private banks: What to expect

The bigger picture is that the gap in corporate governance standards between state-run and private banks is widening

Mint Road’s directive last week to private banks that they onboard “at least two” whole-time directors WTDs) — including the helmsperson — has made it clear there’s to be no drift on the succession planning front going ahead. Less explicit is that only WTDs can move into the corner rooms.

The Reserve Bank of India (RBI) has ensured that the process of selecting the next set of managing directors (MDs) and chief executive officers (CEO) of private banks will be streamlined. The first two test cases will be that of Murali Natrajan of DCB Bank whose tenure is to end on