The Reserve Bank of India (RBI) has sanctioned significant leadership updates for ICICI Bank and Fino Payments Bank to ensure management stability and continuity. Sandeep Bakhshi has been re-appointed as the Managing Director and CEO of ICICI Bank for a two-year term, extending his leadership until October 2028. Simultaneously, Ketan Merchant received a three-month interim extension at Fino Payments Bank as the institution navigates its transition into a Small Finance Bank.
Sandeep Bakhshi’s Tenure Extended at ICICI Bank
The Reserve Bank of India communicated its approval for the re-appointment of Sandeep Bakhshi on May 22, 2026. This extension covers a two-year period starting from October 4, 2026, and concluding on October 3, 2028. Bakhshi, who took the helm in October 2018 during a period of corporate governance challenges, has been instrumental in the bank’s financial recovery. Under his leadership, the bank moved towards a retail-centric model and significantly improved its asset quality.
The decision follows a unanimous recommendation by the bank’s Board of Directors in January 2026. While the regulatory nod from the RBI is a major milestone, the bank is currently seeking formal approval from its shareholders to finalize the transition. Analysts view this extension as a strategic move to maintain investor confidence and ensure the continued execution of the bank’s digital transformation initiatives.
ICICI Bank: A Legacy of Universal Banking and Growth
ICICI Bank is currently India’s second-largest private sector bank by assets. Its journey began in 1955 with the establishment of the Industrial Credit and Investment Corporation of India (ICICI) as a development financial institution. This initiative was a collaborative effort between the World Bank, the Government of India, and industry representatives to provide long-term project financing to Indian businesses.
The bank underwent a major transformation in 2002 through a landmark reverse merger, where the parent company, ICICI Limited, merged into its subsidiary, ICICI Bank. This created a universal bank capable of offering a wide range of financial services. Headquartered in Mumbai, Maharashtra, the bank has consistently been at the forefront of digital banking innovation in India. Under Bakhshi’s tenure, the bank’s Gross Non-Performing Assets (NPAs) saw a significant decline from nearly 8.8% in 2018 to around 2.1% by early 2024, reflecting a robust turnaround in financial health.
Leadership Continuity at Fino Payments Bank
The RBI has also granted a three-month extension to Ketan Merchant as the Interim CEO of Fino Payments Bank, effective from May 27, 2026. This decision ensures stability during a critical period of leadership transition. Merchant, who previously served as the bank’s Chief Financial Officer (CFO), stepped into the interim role earlier in 2026 following the voluntary retirement of the former MD and CEO, Rishi Gupta.
Headquartered in Navi Mumbai, Fino Payments Bank is currently in the process of transitioning into a Small Finance Bank (SFB). The bank received in-principle approval from the RBI for this transition in late 2025, a move that will allow it to expand its lending operations and offer a broader suite of financial products. The interim leadership extension is seen as a way to maintain the momentum of this transition while the bank finalizes its permanent leadership structure. Along with Merchant’s extension, the bank has also retained Anup Agarwal as the Interim CFO for an additional three months starting in July 2026.
The Regulatory Framework: RBI’s Governance Norms for Banks
The Reserve Bank of India maintains strict guidelines regarding the tenure and age of Managing Directors (MD) and Chief Executive Officers (CEO) in private sector banks. These norms are designed to balance leadership stability with the need for fresh perspectives and robust corporate governance. According to the guidelines issued in April 2021, the post of MD and CEO or Whole-Time Director (WTD) cannot be held by the same individual for more than 15 years in the same bank.
For individuals who are also promoters or major shareholders, this tenure is capped at 12 years, though an extension to 15 years may be granted under extraordinary circumstances at the discretion of the RBI. Additionally, the upper age limit for these high-level executive positions is set at 70 years. Once an individual completes their maximum permitted tenure, they are eligible for re-appointment only after a mandatory cooling-off period of three years, during which they cannot be associated with the bank or its group entities in any capacity.
Key Takeaways
- The RBI has approved the re-appointment of Sandeep Bakhshi as the MD and CEO of ICICI Bank for a two-year term starting from October 4, 2026.
- Ketan Merchant has received a three-month extension as the Interim CEO of Fino Payments Bank, effective from May 27, 2026.
- ICICI Bank, headquartered in Mumbai, was originally established in 1955 as a development financial institution.
- Fino Payments Bank is currently transitioning into a Small Finance Bank (SFB) after receiving in-principle approval from the RBI in late 2025.
- According to RBI governance norms, the maximum tenure for an MD and CEO in a private bank is 15 years, with an upper age limit of 70 years.
- A mandatory cooling-off period of three years is required before a former MD and CEO can be re-appointed to the same bank.
