RBI asks HSBC India CEO to quit Nestle

Reserve Bank of India asks HSBC's India chief Naina Kidwai to step down from Nestle board to prevent conflicts.

india Updated: Aug 15, 2006 17:23 IST

The appointment of HSBC's new India chief is being held up by the Reserve Bank of India (RBI), which is asking the executive to quit the board of world's largest food maker, Nestle, to prevent potential conflicts of interest, a source at the global bank said.

"They (RBI) have said she should step down from Nestle board," the source said.

HSBC Holdings Plc appointed Naina Lal Kidwai as the chief executive in May 2006 and had sought approval from the central bank for the appointment.

Kidwai was the deputy chief executive of HSBC when she was appointed director on the Nestle board.

"Usually it takes about a month to get the central bank approval, but it has not come yet," said the source.

An HSBC spokeswoman said: "We are waiting for the approval of Kidwai's appointment as CEO." But she declined to give further details.

Central bank officials were not available for comment.

First Published: Aug 15, 2006 17:23 IST