RBI allows Kotak to lead bank for three more years – Times of India
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MUMBAI: Kotak Mahindra Bank’s promoter and CEO Uday Kotak has been cleared for reappointment by the RBI along with his deputy MD and chairman for three years. The second-most valuable private bank informed the stock exchanges that the regulator had on Monday approved the re-appointment of Kotak as MD & CEO, Prakash Apte as part-time chairman, and Dipak Gupta as joint MD for three years effective January 1, 2021.
The bank’s board had approved the reappointment on May 13 and the decision was ratified by shareholders in the bank’s annual general meeting on August 18.
The RBI nod is significant given that the central bank had earlier this year proposed capping a bank’s CEO tenure at 10 years for promoters and 15 years for non-promoters. Kotak Mahindra Bank was granted its licence in 2003 and Kotak has been the CEO of the lender ever since. The RBI’s clearance for a three-year term would mean that he would lead the bank into its 20th year.
Kotak (61) is already the second-longest serving CEO of a commercial bank after Aditya Puri, who led HDFC Bank for over 25 years.
Kotak is also the president of the Confederation of Indian Industry (CII) and, in 2018, the government had amended a law to enable him to chair a government-appointed board for overseeing the resolution of the failed infrastructure and finance giant IL&FS Group. He also won a reprieve from the RBI this year from being forced to sell a part of his stake in the bank after agreeing to cap promoter’s voting rights.
The bank’s board had approved the reappointment on May 13 and the decision was ratified by shareholders in the bank’s annual general meeting on August 18.
The RBI nod is significant given that the central bank had earlier this year proposed capping a bank’s CEO tenure at 10 years for promoters and 15 years for non-promoters. Kotak Mahindra Bank was granted its licence in 2003 and Kotak has been the CEO of the lender ever since. The RBI’s clearance for a three-year term would mean that he would lead the bank into its 20th year.
Kotak (61) is already the second-longest serving CEO of a commercial bank after Aditya Puri, who led HDFC Bank for over 25 years.
Kotak is also the president of the Confederation of Indian Industry (CII) and, in 2018, the government had amended a law to enable him to chair a government-appointed board for overseeing the resolution of the failed infrastructure and finance giant IL&FS Group. He also won a reprieve from the RBI this year from being forced to sell a part of his stake in the bank after agreeing to cap promoter’s voting rights.
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