The Reserve Bank of India (RBI) has shortened the tenure of Dhanlaxmi Bank’s Additional Director Edasseri Madhavan by around five months.
The reason for this development is not yet announced by the Central Bank.
“It is hereby informed that the appointment of E Madhavan as RBI Additional Director on the Board of the Bank has been discontinued by RBI w.e.f October 19, 2018,” informed Dhanlaxmi Bank in an exchange filing.
Prior to joining Dhanlaxmi Bank, Madhavan was appointed as the s General Manager of Reserve Bank of India. He had also worked as additional non-independent director of Dhanlaxmi Bank from December 11, 2015, till September 29, 2016. He served as the director of the bank from February 28, 2003 to April 2005.
Alteration in Madhavan’s tenure is most likely based on the RBI’s increased scrutiny of CEOs in private banks and board members. Recently, the regulator okayed the appointment of Sandeep Bakhshi as ICICI Bank’s MD and CEO for only three years against the five-year term sought by the ICICI Bank.
Similarly, RBI also altered Axis Bank’s next CEO Amitabh Chaudhry tenure from five years to three years only, starting January 1 and ending on December 31, 2021.
Earlier it also shortened Shikha Sharma’s term. RBI did not clear the re-appointment of Rana Kapoor as the MD and CEO for three years in June despite Yes Bank shareholders’ approval.