Internal as well as external candidates to be on Federal Bank’s radar for new MD

Private sector Federal Bank is in the process of exploring both internal and external candidates for the position of managing director and chief executive officer for the bank as the term for current head Shyam Srinivasan would come to an end on September 22.

The bank is in the process of launching a search since the Reserve Bank of India advised it to submit new names of new candidates responding to the bank’s request for a one year extension for Srinivasan.

After announcing the bank’s quarterly results, Srinivasan said that RBI is perhaps not “inclined to give a one-year extension” to him and may prefer a candidate who can serve for a longer period.

RBI does ot allow an incumbent head to continue for more than 15 years. Srinivasan joined Federal Bank as its head in 2010 and he would complete around 14 years in September this year as head of the bank.

The bank board would look at internal as well as external candidates, Srinivasan said.

The bank had in October last year sought a one-year extension for Srinivasan. RBI, on January 5, directed it to submit a fresh proposal with at least two names for “longer term requirements of the bank”.