Kotak Mahindra Bank has received shareholder approval to appoint Uday Kotak as a non-executive, non-independent director after his tenure as CEO ends later this year.
Uday Kotak is set to retire as managing director and chief executive officer of the private sector lender in December 2023. A sharp majority—99% of shareholders—voted in favour of the resolution to appoint Kotak as a non-executive director.
Rules for the appointment of MDs, CEOs or Whole-Time Directors, notified by Reserve Bank of India in April 2021, state that these posts can be held by the same incumbent for a maximum of 15 years.
While the incumbent can be reappointed as the MD or CEO of the bank, it can only occur after a three-year cooling period.
During this three-year cooling period, the incumbent cannot not be appointed or associated with the bank or its group entities in any capacity, either directly or indirectly, as per the RBI guidelines.
Regarding the tenure of non-executive directors at the bank, RBI rules state that the total tenure of a non-executive director, continuously or otherwise, on the board of a bank cannot exceed eight years.The person can be considered for re-appointment only after a minimum gap of three years.
Uday Kotak has been heading Kotak Mahindra Bank since it was a non-banking financial institution in 1985. Kotak Mahindra Bank transitioned to a commercial bank in 2003.
Kotak Mahindra Bank's stock closed 0.37% higher at Rs 1,891 apiece on Friday, as compared to the 0.36% fall in the benchmark Nifty Bank index.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
