The Reserve Bank of India (RBI) has given the final nod to the re-appointment of Uday Kotak as the managing director and chief executive officer of Kotak Mahindra Bank for tenure of three years. The tenure will come into effect from 1st January 2021, said the bank in its stock exchange filing.
Kotak’s re-appointment as the chief of the private lender became questionable after the banking regulator unveiled a discussion paper in June this year pertaining to the governance of commercial banks. The paper had proposed barring the tenure of bank CEOs who are promoters or large shareholders at 10 years.
Uday Kotak was already associated as the head of Kotak Mahindra Bank for the past 17 years.
Furthermore, the private sector lender also stated that the central bank has given its approval for reappointing Prakash Apte as Part –time Chairman and Dipak Gupta as joint managing director for a period of three years with effect from January 2021.
The lender’s filling stated that the board of the bank and the shareholders had already cleared the above mentioned re-appointments, subject to the approval of the RBI, at their respective meetings held on May 13, 2020, and August 18, 2020.