Uday Kotak To Take Non-executive Role Post His Tenure As MD & CEO
Kotak Mahindra Bank promoter Uday Kotak will have the role of a non-executive, non-independent director of the bank, post his tenure as Managing Director and CEO comes to an end this year, the bank intimated stock exchanges on Saturday.
The bank said the shareholders had voted in favour of appointing Kotak in a non-executive role on the bank’s board post the end of his tenure, and the resolution for the same received more than 99 per cent e-votes from members.
The Reserve Bank of India (RBI) has capped the tenure of private bank chiefs. In 2021 it capped the term at 15 years for chief executives and at 12 years in the case of promoter CEOs.
The bank reappointed Kotak for three years starting in January 2021.
While forwarding the resolution to reappoint Kotak in a non-executive role, the bank said it would continue to need his expertise.
The notice said the board of directors, based on the recommendation of the Nomination and Remuneration Committee at their meeting on March 18, approved appointing Kotak as a non-executive, non-independent director of the bank.
It said Kotak would be appointed for a term of five years, not liable to retire by rotation, upon his ceasing to be the managing director and CEO of the bank.
Kotak Mahindra Bank’s current corporate banking head, KVS Manian, is considered the front-runner to succeed Kotak. Its retail banking head, Shanti Ekambaram, is said to be a close second for the role. The bank has roped in consulting firm Egon Zehnder to lead a global search for a chief executive to replace its billionaire founder.
