RBI Allows Kotak Mahindra Bank To Reappoint Uday Kotak As MD And CEO
Kotak’s reappointment has been approved for three years starting Jan. 1, 2021.
The Reserve Bank of India has today approved the re-appointment of top officials at Kotak Mahindra Bank Ltd.
Uday Kotak will be reappointed as managing director and chief executive officer for a period of three years starting Jan. 1, 2021, Kotak Mahindra Bank said in an exchange filing. The reappointment of Prakash Apte as part-time chairman and Dipak Gupta as joint managing director have also been approved for the same duration.
The board and shareholders had already approved the reappointments.
Earlier this year, the central bank had proposed a 10-year cap for tenure of bank founders as chief executive officer or full-time director. If the rules are formalised, Kotak may have to step down by as early as 2022.
Still, Kotak has previously said that retirement is a “long way off”. The private lender has long-term succession planning framework in place, the billionaire banker had told David Rubenstein, co-founder of Carlye Group Inc., at the Bloomberg India Economic Summit in October.
He has also said his family is committed to remaining long-term owners and shareholders of the bank. Kotak’s elder son, Jay, is an associate vice president at Kotak Mahindra Bank.
Shares of Kotak Mahindra Bank Ltd. closed 1% higher on Monday, while the benchmark BSE Sensex ended trade 0.33% up.