Kotak Mahindra Bank CEO Ashok Vaswani to step down in December; board begins succession hunt

Kotak Mahindra Bank on Saturday said Managing Director and Chief Executive Officer Ashok Vaswani has informed the board that he does not wish to seek reappointment after the completion of his current term on December 31, 2026.

In a regulatory filing, the bank said Vaswani had conveyed his decision for "personal reasons."

"The Board has, at its meeting held today, respected his decision and has initiated the process for the appointment of a new Managing Director & CEO. The process will be completed within applicable regulatory timelines," the bank said.

Vaswani, a veteran banker who previously held senior roles at Barclays and Citigroup, took over as Kotak Mahindra Bank's CEO on January 1, 2024.

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Succession process begins at Kotak

The leadership transition comes as Kotak Mahindra Bank emerges from a period of regulatory scrutiny and seeks to accelerate growth.

Earlier this month, Vaswani told Reuters that the lender was aiming to become India's third-largest private sector bank by after-tax profit.

"Vaswani served for just one term, and hopefully a credible long-term replacement, either internally or externally, should ease the concerns and then the stock should track its fundamentals," Anand Dama, Executive Director at Nuvama Institutional Equities, told Reuters.

Dama said the announcement could trigger a correction in the bank's stock.

Kotak Bank: Focus on growth

Kotak Mahindra Bank reported a 13% increase in net profit to Rs 4,027 crore in the fourth quarter of 2025-26, aided by stronger lending growth and lower provisions.

In an internal letter to employees, seen by Reuters, Vaswani said he would continue to work closely with the chairman and the board during the transition period. He described the period ahead as "some of the most important months in Kotak's journey."

The bank's shares last closed at Rs 409 on Thursday.