Speculations of long-term succession planning are rife after Kotak Mahindra Bank's vice-chairman and chief executive Uday Kotak introduced his son Jay Kotak, who currently co-heads the bank's digital platform 811, in an investor's meeting on Thursday, 26 May.

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Jay Kotak joined 811 in January last year and was elevated as the co-head in January this year.

Uday Kotak had earlier said he would continue to be at the helm of Kotak Mahindra Bank until December 2023, which is when his term comes to an end. The Reserve Bank of India has set a definite deadline of 15 years for the post of CEO of lenders.

"Succession planning is a continuous process that every bank or company thinks of," he had said while interacting with the reporters on May 3.

Veteran KVS Manian, a member of the bank's Operating Management Committee (OMANCOM), is expected to be the incumbent head's immediate successor.

During the investor's event, Jay Kotak made a presentation highlighting the bank's five-year journey since the inception of the bank's digital arm 811. The bank's digital platform 811 contributed 30 percent of the bank's savings accounts during the last quarter of FY22.

Amit Tandon, founder of Institutional Investor Advisory Services India Limited (IiAS), however, looks at Jay Kodak's participation from a different perspective. He believes that since the family has a lot of wealth tied up in the business, it's only obvious that the knowledge is passed from one generation to the other.

"He (Jay Kotak) makes a presentation or not, people are going to listen to him," Tandon said. When asked, Rohit Rao, spokesperson of Kotak Mahindra Bank, said the speculations are “incorrect”.

Jay Kotak joined the Kotak Investment Bank (Kotak Mahindra Capital Company) in 2017. He holds an MBA from Harvard and a BA degree in History from Columbia University. He has prior work experience with McKinsey & Co and Goldman Sachs.

Kotak Mahindra Bank Limited owns equity in Amit Tandon's Institutional Investor Advisory Services India Limited.

First Published:May 30, 2022 4:08 PM IST