In the last five years, be it Shikha Sharma’s forth-time reappointment as MD & CEO of Axis Bank in 2018 or the suspense-filled reappointment of Shyam Srinivasan at Federal Bank since 2019 or the more recent Vishwavir Ahuja episode at RBL Bank, appointment and reappointment of top bosses at banks hasn’t been anything short of a rapt drama.

While there is a clear law capping the CEO’s tenure at 15 years in a bank, the ‘fit and proper’ criteria of the central bank is a matter of grey area left to interpretations and guess work. No wonder then that banks go through the question of who the next CEO would be.

Come 2023, we’ll have 10 major banks going through this suspense.

It’s a critical year for IndusInd Bank, City Union Bank, ICICI Bank and HDFC Bank. For IndusInd Bank and HDFC Bank, their MD & CEOs are those who would have finished their first stint of three years and are up for reappointment. Sandeep Bakshi of ICICI Bank would have completed five years at office in October 2023, while N Kamakodi of City Union Bank (CUB) would have served 13 years as its MD & CEO.

Usually, the boards approve the reappointment six months prior to the MD & CEO’s term coming to an end, shareholders ratify it, and the RBI’s nod comes through closer to the end of tenure. The boards of IndusInd Bank, ICICI Bank and CUB have approved the reappointment of their MD & CEOs for three years. RBI nod is awaited.

Sandeep Bakshi and Sumant Kathpalia have a lot in common. While the reasons are different, both took charge of their banks when things were at their lowest point, whether financially or sentiment-wise. Avoiding the public attention, they have quietly transformed the banks as stronger outfits, and this has been reflecting in the stock prices. ICICI Bank has returned 171 per cent gains since September 2018, while IndusInd Bank has delivered nearly three-fold gains from March 2020 lows when Kathpalia took charge. But each have had their share of issues. Despite a stellar profile and ICICI Bank board recommending Bakshi’s appointment for 5 years in 2018, the RBI gave him only three years at office.

In 2021, when the board had recommended his reappointment for three years, the central bank cut the tenure to two years, for reasons best known only to them.

Again, he has been recommended for three years, and it would be interesting to see the regulator’s decision. Technically, the law favours a longer tenure, but it may also take away a generation of leadership from getting created at ICICI Bank.

For Kathpalia, what he faced in the initial months of assuming charge and later the MFI arm’s whistleblower episode, are dark spots in his otherwise impressive stint as MD & CEO. Will the regulator overlook these for the larger good? CUB was recently at the line of firing when divergence in NPA surfaced post RBI inspection for FY22. Will this be a stumbling block for Kamakodi’s reappointment (probably his last stint) at the bank, given that CUB historically is known for ensuring high governance standards.

The embargo on credit cards and digitally sourcing of customers didn’t make it easy for Sashidhar Jagdishan in his initial months as MD & CEO of HDFC Bank. But the feather on his cap would be spearheading the mega merger of HDFC Limited with the bank. Meanwhile, elevating Kaizad Bharucha as Deputy Managing Director (a post that remained vacant since August 2018) has sparked talks around a second line of command probably getting established at HDFC Bank. Will its board unanimously recommend Jagdishan for another term to head the bank and the RBI deem it fit? This will be known soon.

The most interesting transition is set to happen at Kotak Mahindra Bank, when the promoter and chief executive Uday Kotak steps down in December 2023.

While its reasonably certain that an internal hand would replace Kotak, and the name would be known by mid-2023, those taking charge as the second in-command will affirm the tone of future leadership at the lender. In contrast, Karnataka Bank may, for the first time in many years, be looking outside to fill the shoes of MD & CEO as MS Mahabaleshwar would step down in April 2023, a year ahead of his planned tenure.

His premature exit has raised questions around the bank’s future. The candidate selected to replace Mahabaleshwar would reveal what’s in store for Karnataka Bank.

Four PSU banks – State Bank of India, Bank of Baroda, Bank of India and Canara Bank – are set to welcome new chiefs this year. But given the scale, SBI and BoB will be closely watched.

It’s a tradition at SBI to pick its chairman from the pool of managing directors, and there are four in the race. In 2020, CS Setty and Dinesh Khara were recommended for the chairman’s position and Khara made the cut. Will Setty (56 years) make it to the top this time? Bank of Baroda has always had an external hand at helm, someone from even the private sector in the past. This time may be no different but who knows.