On December 14, Reserve Bank Of India (RBI) approved the reappointment of Uday Kotak as the managing director of private sector entity Kotak Mahindra Bank (KMB) with effect from 1st January 2021, for a period of three years. The regulatory body has also approved the appointment of part time chairman Prakash Apte for three years.
“The Reserve Bank of India (RBI) has vide its letter dated 14th December 2020, granted approval for the reappointments of Prakash Apte as Part-time Chairman; Uday Kotak as MD & CEO; and Dipak Gupta as Joint MD for a period of 3 years, with effect from January 1, 2021,” the bank said in a regulatory filing.
The board of the bank and the shareholders had approved these reappointments on the basis of meetings held on May 13, 2020, and August 18, 2020.
According to the discussion paper released in June this year, on governance at commercial banks, proposed capping the tenure of bank CEOs who are promoters or large shareholders at 10 years. Questions are raised on reappointment in effect to the paper. Kotak has already served as the head of Kotak Mahindra Bank for the past 17 years.
Kotak is founder managing director and promoter of the bank, while Apte was appointed as the part time Chairman of the bank at the annual general meeting held on July 19, 2018, for a period from July 20, 2018, till December 31, 2020.
