This has led to speculation in banking circles that the Reserve Bank of India might have changed its earlier stance that she would have to resign from the Nestle board before her appointment as the CEO is approved.
However, sources close to the RBI said the central bank would not change its policy.
Kidwai was appointed CEO of HSBC India in May and the regulator gave its approval subject to her stepping off the Nestle board, as under the Banking Regulation Act, the CEO of a bank cannot hold a board-level position in another company.
According to the RBI, her being on the board of Nestle SA could give rise to a conflict of interest if the bank were to lend to or deal with Nestle or its Indian subsidiary. Since Kidwai is still on the Nestle board, she continues to be CEO-designate
Kidwai was overseas and not available for comment. A spokesperson of HSBC India declined to comment on the subject. The Nestle SA website continues to carry her photograph in the "Nestle Management" section as one of the 14 directors on the board and mentions that her term expires in 2011.
In an e-mail response, a Nestle SA spokesperson said, "Kidwai is a member of the board of Nestlé SA. We understand that contacts between her and the regulatory authorities in India are ongoing."
HSBC had earlier said that its compliance was of the highest order and it would comply with all regulatory requirements in India.
The Nestle SA board will meet on October 19 to take into account its nine months' sales. It is not known whether Kidwai plans to resign before the board meeting next month.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
© 2025