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RBI allows Uday Kotak's re-appointment as Kotak Bank CEO, MD for 3 years

RBI allows Uday Kotak's re-appointment as Kotak Bank CEO, MD for 3 years

Uday Kotak had assumed office as CII chief for 2020-21 in June; Prakash Apte has been appointed as part-time chairman and Dipak Gupta as joint MD for 3 years, with effect from January 1, 2021

Uday Kotak, MD & CEO of Kotak Mahindra Bank Uday Kotak, MD & CEO of Kotak Mahindra Bank

The Reserve Bank of India (RBI) has approved the re-appointments of Uday Kotak as MD & CEO of Kotak Mahindra Bank for three years, the lender informed the stock exchanges.

"The Board of directors of the bank and the shareholders had approved the aforesaid re-appointments, subject to the approval of the RBI, at their respective meetings held on May 13, 2020, and August 18, 2020," the bank said.

Prakash Apte has been appointed as part-time chairman and Dipak Gupta as joint MD for 3 years, with effect from January 1, 2021, said the bank.

Veteran banker Uday Kotak had assumed office as the president of the Confederation of Indian Industry (CII) for 2020-21 in June after replacing Vikram Kirloskar, chairman and managing director of Kirloskar Systems Ltd and vice-chairman of Toyota Kirloskar Motor.

He was also appointed as non-executive chairman of the new IL&FS board to steer the company out of its financial crisis in 2019. He was also chairman of the Sebi panel on corporate governance.

This year, he got relief from the RBI over his stake issue in the private bank. The relief came after he agreed to cap promoter's voting rights.

On January 30, 2020, the bank said the RBI had agreed to its proposal to reduce promoters' stake to 26 per cent from over 29 percent over the next six months, which is June. It said promoters' voting rights would be capped at 20 per cent of the paid-up voting share capital until March 31, 2020 and would be further capped at 15 per cent effective April 1, 2020.

Also read: Uday Kotak's shareholding in Kotak Mahindra Bank falls below 26%