The RBI’s ban has dealt a body blow to India’s fourth largest private sector lender. The implications go beyond just the numbers.
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The CEO’s tenure has been extended to no more than a year by the RBI, instead of the three sought by the bank. The regulator’s message is loud and clear: this might be Kathpalia’s last chance at getting his house in order.
Mounting concentration risk has forced the fund house to change tack yet again. While shifting focus to small-cap stocks from defensive ones could somewhat help, such frequent switches are less than ideal.
The CEO of the financial services business of the Aditya Birla Group has little to show for her near three years at the helm. That her digital push has turned out to be a dud only makes it worse.