MUMBAI, NEW DELHI, AUG 14: The position of HSBC India CEO, Naina Lal Kidwai, 49, as the bank’s boss now hangs in balance, with the Reserve Bank of India asking her to step down from the global board of Nestle SA. The RBI has withheld approval of Kidwai as HSBC CEO until she quits the Nestle board.
Kidwai was elected to the Nestle’s board by the company’s shareholders at an annual general meeting on April 6, 2006. Just a month later, she succeeded Niall SK Booker as the CEO of HSBC India on May 5.
The central bank’s argument, sources said, was that Kidwai’s position as the bank’s CEO resulted in a conflict of interests. She must, therefore, not retain her board membership in Nestle SA, in keeping with of good corporate governance.
The sources said, the RBI had not yet ratified her appointment as HSBC India CEO and was awaiting a resolution of the Nestle directorship issue. This means even if Kidwai continues to function at the helm of HSBC India, the regulator will not recognise her as the bank’s chief.
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