North East Small Finance BankWhich recently merged with fintech firm Slice, is struggling to hire ceo, The bank is in urgent need of a Chief Executive as it goes through this transitional phase.
based in kerala Dhanlaxmi Bank It is grappling with succession uncertainty as the tenure of its current MD and CEO JK Shivan ends next month. The Bank is looking for candidates to pass the baton.
Founder of Equitas Small Finance Bank PN Vasudevan He accepted the board’s request to continue leading the company after he resigned in 2022 due to an unsuccessful search for a new chief executive. The board then ended the CEO search that had been going on for more than a year.
Many older generation private and small finance banks are smaller than larger NBFCs and financial constraints prevent them from offering the top-tier salaries required to attract candidates with a deep understanding of the emerging economic landscape.
As larger banks are using digital services and apps to capture deposit accounts, smaller banks need leaders with versatile skills to drive transformation and develop strategies for digital services. Also, CEOs of small banks need leadership skills to efficiently manage organizations with large numbers of unionized personnel.
The candidate must have sufficient years of service left and must be willing to work for a lower salary than larger peers due to RBI guidelines that discourage disproportionate pay in relation to profits. RBI’s reluctance to approve candidates without banking experience further complicates the appointment process.
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However, in case of big commercial banks, there is no dearth of candidates. Ashok Vaswani, Kotak Mahindra BankThe RBI-approved CEO-designate, formerly a global banker with Citibank and Barclays, is set to take charge next week. However, larger banks sometimes face the challenge of obtaining candidates who meet the approval of both the bank’s board and the regulator.