Private bank chiefs can stay on in office till the age of 70
The Reserve Bank has ended the suspense on the age limit for private sector bank chief executives, bringing relief for investors in HDFC Bank and IndusInd Bank, who might have been worried about the fate of their rock star chiefs who have delivered enormous returns in the past few years. Full-time directors of private banks can now continue up to the age of 70, in line with the latest Companies Act. The bank boards will, however, retain the right to set a lower retirement age for officials, said RBI on Tuesday. One consequence of RBI's clarification might be that second-rung leaders in some of these banks could begin to look for greener pastures as their leadership opportunities will diminish, with many current CEOs likely to continue at least for another five years.
Read the Economic Times news report here.