Kotak Mahindra Bank Says No Communication From RBI On CEO Succession

Kotak Mahindra Bank Ltd. has denied reports of any communication from the Reserve Bank of India on the succession of its chief executive officer.

"We would like to state that there is no communication, formal or informal, from RBI to Kotak Mahindra Bank or its Board members on CEO succession," the bank said in an official statement on Monday.

The private lender has also mentioned that it holds all regulatory approvals, including from the RBI, for its stake in its insurance subsidiaries. It has not received any formal or informal communication to the contrary, it said.

Earlier today, a Bloomberg report indicated that the central bank is nudging Kotak Mahindra Bank to choose someone outside the lender's ranks to succeed Uday Kotak as the next chief executive.

The RBI has conveyed its view to the board members of the bank, the report said. The central bank was also reviewing whether the stakes that the banking group holds in two wholly-owned insurance units pose any risks to the firm's stability, it said.

Uday Kotak's tenure as the chief executive of Kotak Mahindra Bank ends in December this year. However, he has received approval from the shareholders to transition to a non-executive role from a whole-time one after this tenure.

Shares of Kotak Mahindra Bank were trading 1.24% lower at Rs 1,853.65 apiece as of 2:23 p.m.