DCB Bank on Friday said it had constituted a search committee and appointed headhunter company Korn Ferry to select a successor to Managing Director (MD) and Chief Executive Officer (CEO) Murli Natarajan.
Natarajan, who was appointed in May 2009, will complete 15 years at the helm on April 28, 2024.
In a communication to the exchanges, DCB Bank said the panel and Ferry would evaluate both external and internal candidates over the next few months. “The bank will endeavour to complete the succession process within stipulated regulatory guidelines,” the lender said.
According to Reserve Bank of India (RBI) norms, a bank should submit the names of candidates six months before the term ends. Typically, the regulator expects more than one name from a bank for the CEO post, for selection.
According to the RBI norms, a MD & CEO can serve a bank for a maximum 15 years. The same person can be appointed as MD & CEO, if considered by the board, after a minimum gap of three years.
Natarajan, who completed 61 years in March, is eligible for re-appointment after three years. The RBI norms allow private sector bank MD & CEO to continue till 70 years.
Also Read
Natarajan, who was the global head for SME banking in Standard Chartered Bank before taking charge in DCB Bank, steadied the private bank when it was going through a rough phase.
A fellow member of the Institute of Chartered Accountants of India, Natarajan started his career with American Express TRS in India where he worked for five years in business planning, finance, and operations.
In 1989, he joined Citibank where he spent 14 years in various disciplines. Prior to joining Standard Chartered Bank in October 2002, Murali had successful stints as cards business director in Citibank India, Hong Kong, and Indonesia.
