Will continue to be MD & CEO of bank till Dec 2023: Uday Kotak

Uday Kotak had sold 56 million shares held by him in the bank for at least Rs 6,913.75 crore through a block deal to reduce his stake to 26%.

Kotak Mahindra Bank’s MD and CEO Uday Kotak on Monday said he would be with the bank at least till his term ends. On his succession plans, Kotak said the bank’s board would act in a manner which is appropriate and responsible.

The comments from Kotak came after the Reserve Bank of India (RBI) issued guidelines that the MD and CEO of a private bank cannot have a tenure of more than 15 years. RBI had earlier approved the re-appointment of Uday Kotak as MD & CEO of Kotak Mahindra Bank for three years in December 2020.

“Right now, my tenure is till December 2023 and you are going to see me at least till then,” Kotak said. He said succession planning is a continuous process for any institution. “Our board members are fully aware of their responsibilities and they will act in a manner, which is appropriate and responsible.” he added.

Kotak had a prolonged disagreement with the central bank over his personal holding in the private lender. He had moved the Bombay HC in December 2018 against an RBI diktat on reducing promoter holding to 15% by March 2020. The matter was resolved after RBI allowed the promoter stake to be reduced to 26%.

Uday Kotak had sold 56 million shares held by him in the bank for at least Rs 6,913.75 crore through a block deal to reduce his stake to 26%.