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🏦 IDFC FIRST Bank Engages Domestic Institutions Over Warburg Pincus Board Seat Concerns
IDFC FIRST Bank is actively working with domestic institutional investors to address objections regarding the proposed appointment of a Warburg Pincus representative to its board, according to NDTV Profit. The primary point of contention is the “non-retiring director” clause.
The bank is attempting to ease concerns after some domestic institutions opposed the appointment of a Warburg Pincus nominee as a non-retiring director, a move that would grant the nominee a permanent seat unless removed. While the clause drew resistance, it is generally standard practice for investors holding a 10% stake—as Warburg Pincus does—to be granted board representation. The bank is reportedly in discussions to find a mutually agreeable resolution that respects investor governance norms while acknowledging Warburg’s significant investment.
