Kotak Mahindra Bank chief executive and CEO Uday Kotak said on Monday that he would stay with the bank at least until the end of his term. Regarding his succession plans, Kotak said the bank’s board will act appropriately and responsibly.
Kotak’s comments came after the Reserve Bank of India (RBI) issued guidelines that the managing director and CEO of a private bank cannot serve a term of more than 15 years. RBI previously approved Uday Kotak’s reappointment as CEO and CEO of Kotak Mahindra Bank for three years in December 2020.
“Right now my term is until December 2023 and you’re going to see me at least until then,” Kotak said. According to him, succession planning is an ongoing process for any institution. “Our board members are fully aware of their responsibilities and will act appropriately and responsibly.” he added.
Kotak had a protracted disagreement with the central bank over his personal stake in the private lender. He had moved the Bombay HC in December 2018 against an RBI diktat on reducing the promoter’s stake to 15% by March 2020. The case was resolved after the RBI allowed the promoter’s stake to be reduced. at 26%.
Uday Kotak had sold 56 million shares he owned in the bank for at least Rs 6,913.75 crore through a block deal to reduce his stake to 26%.
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