RBI Governor flagged off an important debate on the need to separate the roles of a board chairman from CEO for public sector banks. He said this will act as a check on the CEO. The Governor was probably moved by the regularity with which banks see severe profit declines when their CMDs retire. CNBC-TV18's Gopika Gopakumar and Supraja Srinivasan report.
Governor Subbarao recommended the need to split the posts of chairman and CEO of public sector banks. This has already been done for private sector banks and the Governor pointed out that after the 2008 global banking crisis, such a split of roles is being recommended globally. .
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