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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The regulator is pushing for incumbents to be replaced with candidates from outside (and shorter tenures), while the banks continue to set store by continuity and stability.
Federal Bank CEO Shyam Srinivasan steps down in September. With mere months to go, his successor ought to have been finalized by now. Especially so given that the bank isn’t lacking in the requisite talent to take the helm.
That this hasn’t happened is because the Reserve Bank of India has pushed it to scout for an external candidate for the top job. Easier said than done, given the paucity of executives with C-suite experience in the banking system.
Again, it’s not as if the central bank is singling out Federal Bank. Over the past few years, the RBI …
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
The RBI’s unusually harsh order raises deeper questions about management credibility—and whether investors should take assurances at face value.
