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MUMBAI: Kotak Mahindra Bank shareholders have approved the appointment of Uday Kotak as non-executive, non-independent director once he ceases to be MD & CEO. The bank’s founder-promoter is expected to step down by this year-end.
Although Kotak, 64, is well within the 70-year age limit for chief executives, latest directions by the RBI cap a bank chief executive’s tenure at 15 years.
Kotak founded Kotak Mahindra Finance in 1985. It became the first NBFC to get a banking licence in 2003. Most of the leadership team, including Kotak, has been with the group since it was founded.
There is speculation that Kotak may take charge as chairman, given his position as an industry veteran.
The bank held voting for the re-appointment of Kotak electronically. Around 99% favoured the resolution, which was passed on April 19. The shareholders also approved a proposal to issue unsecured, redeemable, non-convertible bonds and other debt securities.
RBI has asked bank boards to recommend candidates well before incumbent CEOs complete their terms. With less than nine months to go for Kotak, the bank will likely have short-listed his successor.
Many believe some senior executives are likely to be recommended, given the group’s philosophy of promoting long-term employees to senior positions. Some reports indicate the board has picked executive search firm Egon Zehnder to identify a successor.
Although Kotak, 64, is well within the 70-year age limit for chief executives, latest directions by the RBI cap a bank chief executive’s tenure at 15 years.
Kotak founded Kotak Mahindra Finance in 1985. It became the first NBFC to get a banking licence in 2003. Most of the leadership team, including Kotak, has been with the group since it was founded.
There is speculation that Kotak may take charge as chairman, given his position as an industry veteran.
The bank held voting for the re-appointment of Kotak electronically. Around 99% favoured the resolution, which was passed on April 19. The shareholders also approved a proposal to issue unsecured, redeemable, non-convertible bonds and other debt securities.
RBI has asked bank boards to recommend candidates well before incumbent CEOs complete their terms. With less than nine months to go for Kotak, the bank will likely have short-listed his successor.
Many believe some senior executives are likely to be recommended, given the group’s philosophy of promoting long-term employees to senior positions. Some reports indicate the board has picked executive search firm Egon Zehnder to identify a successor.
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