Kotak Bank shares: MD and CEO Ashok Vaswani to step down; Saha looks best placed, says Nomura; target price

Nomura on Monday said that Anup Kumar Saha, whole-time director at Kotak Mahindra Bank and head of Consumer Banking, Marketing and Data Analytics, is best placed to succeed outgoing managing director and chief executive Ashok Vaswani at the private lender.

The brokerage's view came after Vaswani told the bank's board that he would not seek reappointment when his current term ends on December 31, 2026, citing personal reasons. A board recommendation by September-October 2026 is plausible, Nomura said as it retained 'Buy' and a target of Rs 460 on the Kotak Bank stock. At 9.23 am, the stock was trading 2.3 per cent lower at Rs 399.60 apiece.

Appointed as whole-time director in March 2026, Saha leads businesses that sit at the centre of Kotak's long-term strategy, including consumer banking, marketing and digital transformation. His prior experience spans 14 years at ICICI Bank across retail banking and credit cards, followed by eight years at Bajaj Finance, where he eventually became MD & CEO. 

"An IIT + IIM alumnus, Saha combines deep consumer finance expertise with proven digital execution capabilities, making him well aligned with the Bank's strategic priorities," Nomura said.

Other possible internal candidates included Paritosh Kashyap (Wholesale Banking) and Jaideep Hansraj (Affluent Banking and HR). While RBI approval as Whole-time Director is not a regulatory prerequisite for appointment as MD & CEO, it materially reduces execution risk and provides the board with a clear path to completing the succession process ahead of the December, Nomura said.

In the case of Kashyap, he brings more than three decades of institutional experience across wholesale banking and debt capital markets. However, relative to Saha, his experience is more concentrated within wholesale banking, Nomura said.

"Hansraj has built strong franchises in affluent banking and wealth while also overseeing HR, though his current mandate is narrower relative to the breadth typically associated with the CEO role, in our view," Nomura said.

Vaswani took charge of Kotak Mahindra Bank on January 1, 2024, succeeding founder Uday Kotak after over two decades of founder-led stewardship. His three-year term will translate to exactly one completed term, a notably short stint for a franchise of this scale, Nomura said.

The foreign brokerage said the Kotak Bank board has previously demonstrated its willingness to appoint an external leader, having selected Vaswani over senior internal executives in 2023. Therefore, an external appointment cannot be ruled out. 

"However, the presence of multiple RBI-approved Whole-time Directors, particularly Saha, provides the Board with credible internal options," Nomura said.

"If Saha is the internal choice, the succession path is already substantially de-risked. The risk event is an external hire, which may raise questions around the Board’s succession process and create near-term execution uncertainty. We believe the CEO transition is unlikely to alter Kotak’s strategic direction. Maintain Buy," it said.

Meanwhile, Nomura said one question investors may raise relates to Saha's four-month tenure as MD & CEO of Bajaj Finance before his resignation. "While the company cited personal reasons, we do not view the episode as a meaningful negative, particularly given his subsequent appointment as Whole-time Director at Kotak after receiving RBI approval," it said.

"Positively, KMB’s lateral hiring of Mr. Anup Saha (ex-MD&CEO, Bajaj Finance) as ED in Jan’26, and elevation of long-timer Mr. Paritosh Kashyap’s to ED in May’25 may be construed indicative of succession planning. Retain BUY with unchanged target of INR 480 due to attractive valuations and sectoral tailwinds," ICICI Securities said in another note.