DCB Bank Gets RBI Approval to Amend Articles of Association

DCB Bank Limited has received approval from Reserve Bank of India (RBI) to amend a provision in its Articles of Association. The regulatory approval was granted through a letter dated March 16, 2026. The amendment relates specifically to Article 140B, which deals with the special position and tenure-related provisions of the Whole-Time Director in the bank.

Details of the Amendment

Earlier, Article 140B stated that a Whole-Time Director would not be subject to retirement by rotation while holding the position. This meant that such directors could continue in their roles without being part of the standard director rotation process that typically applies to board members in companies.

Under the proposed amendment approved by the RBI, a Whole-Time Director may now be made liable for retirement by rotation, provided the bank’s Board of Directors approves such a decision. This change introduces greater flexibility in the governance structure of the bank and aligns the director tenure provisions more closely with standard corporate governance practices.

However, the clause retains a key provision stating that if a person ceases to hold the office of Director, they will automatically and immediately cease to be a Whole-Time Director as well.

Implications for Corporate Governance

The amendment provides the bank’s board with the authority to decide whether a Whole-Time Director should be subject to retirement by rotation. This could help strengthen board oversight and ensure periodic review of leadership roles within the organisation.

Regulatory approvals for such amendments are essential in the banking sector, where governance frameworks must comply with the guidelines set by the central bank. The change also reflects evolving governance practices within financial institutions.

On March 17, 2026, DCB Bank share price opened at ₹170.45, touching the day’s low at ₹166.21, as of 11:10 AM on the NSE.

Also Read: DCB Bank Jump Over 8% After Q3 FY26 Net Profit Rises 22%!

Conclusion

With the RBI’s approval, DCB Bank will proceed with the amendment to Article 140B in its Articles of Association. The revised clause is expected to provide greater governance flexibility while maintaining regulatory compliance and clarity regarding the role and tenure of Whole-Time Directors.

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