India Kotak Mahindra Bank gets cenbank nod to appoint Ashok Vaswani as MD, CEO (updated)

Indian Bank

21/10/2023 12:37

(Updates with details, background throughout)
    By Siddhi Nayak and Ira Dugal
       MUMBAI, Oct 21 (Reuters) - India's central bank has
approved the appointment of veteran banker Ashok Vaswani as
managing director and chief executive of Kotak Mahindra Bank
 KTKM.NS , the private lender said in an exchange filing on
Saturday.
    The appointment, subject to shareholders' approval, is for a
period of three years after Vaswani begins his term, which will
not be later than Jan. 1, 2024, said the bank, the fourth
largest Indian lender by market capitalisation. 
    Vaswani is an international banker with experience spanning
for three and a half decades. He was CEO of Citigroup Asia
Pacific, and more recently, CEO of Barclays  BARCR.UL .
    Current regulatory rules mandate that private banks propose
at least two candidates with the Reserve Bank of India (RBI) for
the post of MD and CEO at least four months before the expiry of
the term of office of the present incumbent.
    Vaswani's appointment comes after billionaire Uday Kotak,
who founded Kotak Mahindra Bank, resigned as the MD and CEO last
month in a surprise move, citing personal reasons. 
    Kotak's term was due to end in December. India's banking
regulations limit the tenure of chief executives to 12 years if
they are also large shareholders.
    Kotak, however, continues to be on the bank's board as a
non-executive director.
        Dipak Gupta, currently the managing director and CEO,
will carry out the chief executive duties until Dec. 31, the
bank had said last month.
    "I am delighted that the RBI has approved our
recommendation, Ashok Vaswani, as the next CEO of Kotak Mahindra
Bank," Kotak said in the filing, describing him as a "world
class leader" with digital and customer focus.
    Vaswani's appointment comes as a surprise because most
analysts had expected an insider to succeed Kotak.
    At the same time, they had flagged concerns that Kotak's
presence would loom large over his successor if an internal
candidate was chosen for the post.
    Gupta said he did not expect senior-level attrition at the
bank: "The idea was to bring in global talent," he said on a
post-earnings media call on Saturday. 
    KVS Manian and Shanti Ekambaram, the two most senior bankers
at Kotak Mahindra Bank, will remain on the board and keep their
current roles, Gupta added.

 (Reporting by Siddhi Nayak and Ira Dugal; Editing by William
Mallard and Clelia Oziel)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848; Reuters
Messaging: Twitter: https://twitter.com/siddhiVnayak))