RBI Reviews Succession Plan for Kotak Mahindra Bank's CEO

31 Jul 2023 , 01:16 PM

The Reserve Bank of India (RBI) is closely scrutinizing the succession plan for Kotak Mahindra Bank’s Managing Director and CEO, Uday Kotak. The central bank has expressed the need for an outsider to be chosen as the next CEO to succeed the billionaire founder.

The RBI conveyed its stance to the board members of Kotak Mahindra Bank, signaling its preference for an external candidate for the top leadership role. Additionally, the regulator is conducting a review to assess any potential risks posed by the stakes held by the Kotak Mahindra banking group in its insurance units.

In April of this year, Kotak Mahindra Bank announced through an exchange filing that Uday Kotak would be appointed as a non-executive and non-independent director of the bank after the conclusion of his tenure as CEO and MD in 2023. This transition is driven by the RBI’s guidelines that limit the tenures of Indian business heads.

Uday Kotak, who founded the bank in 1985 as a non-banking financial institution, has been at the helm since its inception. The bank achieved commercial lender status in 2003 and has since grown to operate 1,752 branches across India as of the end of 2022.

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