Uday Kotak, the current Chief Executive Officer and Managing Director (CEO and MD) of Kotak Mahindra Bank, is set to taked the non-executive role in the bank after his tenure as CEO ends this year.

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Following the conclusion of his term as MD and CEO, Kotak will be appointed as a non-executive, non-independent Director of the bank, according to a regulatory filing made on April 21.

Kotak Mahindra Bank has received the shareholders nod for the same. According to the filing 99 percent of shareholders voted in favour of the resolution to appoint Kotak as a non-executive director.

On December 31, 2023, Kotak's term as the bank's CEO and MD would come to an end. Since its establishment as a non-banking financial corporation (NBFC) in 1985, Kotak Mahindra Bank (KMB), the fourth largest private lender in the nation, has been led by seasoned banker Uday Kotak. The corporation has expanded to become a financial powerhouse across segments since becoming a bank in 2003.

Kotak Mahindra Bank in Q3FY23 reported that its profit rose to Rs 2,791.9 crore, beating the CNBC-TV18 poll projection that pegged the figure at Rs 2,682.9 crore. In the same quarter last fiscal, its profit stood at Rs 2131.4 crore, implying a 31 percent increase in this quarter.

The lender’s net interest income for the three month period also surpassed estimated by 6.1 percent and came in at Rs 5,652.9 crore against the poll estimate of Rs 5,330 crore. In the corresponding quarter in FY22, the bank had registered a net interest income of Rs 4334.3 crore.

Further, according to a Bloomberg report Kotak Mahindra Bank Ltd.’s board has engaged consulting firm Egon Zehnder to replace its incumbent chief executive officer (CEO) Uday Kotak.

Also read: Uday Kotak on India's business landscape —Need world class companies but

As per the report, the bank's board is expanding the search to find suitable external candidates. Among contenders for the bank's top post, group Presidents and whole-time directors Shanti Ekambaram and KVS Manian are in the race.

Shanti Ekambaram joined Kotak Mahindra Bank in 1991 and oversees several functions including public affairs, human resources, online saving accounts business and treasury. She is the highest-ranking woman in the bank and continues to lead its consumer banking.

KVS Manian, on the other hand, joined in 1995 and heads the wholesale banking and wealth management business. He also has oversight responsibility for investment banks and institutional equities businesses.

Also read: Uday Kotak sees India's macro factors emerging stronger amid global turmoil

First Published:Apr 22, 2023 6:22 PM IST