The board of directors of is aware of succession planning and will take a call in due course, Asia’s richest banker Uday Kotak said Monday. Kotak, whose tenure as head of Kotak Mahindra Bank would end in December 2023 after RBI capped the tenure of private bank CEOs, said the board will ensure and maintain the long-term value of stakeholders.
“The Board of Directors and the bank are fully committed to the long-term value of stakeholders and the bank as an institution will do everything possible to ensure this,” said Kotak. “Commitment to long-term institution building is at the core of our values and we will do whatever we can to uphold it.”
The RBI has limited the tenure of chief executives to 15 years and promoter CEOs to 12 years, a rule Kotak would not question for another tenure.
Asia’s richest banker Uday Kotak was reappointed by the central bank for a period of three years from January 2021. Kotak has been managing director of the bank for 17 years.
“His term now ends in January 2024 and he cannot be reappointed as he has already completed 15 years as managing director and CEO,” Suresh Ganapathy, deputy director of Macquarie Capital, said in a note. “In our view, Dipak Gupta (current joint managing director) may not be fully qualified (assuming three years is the minimum length one would like) to succeed Kotak as CEO after January 1st. 2024. ”
Kotak also said that succession planning is an ongoing process and the board will act responsibly at the right time.
“Every financial institution or corporation has plans if something happens to the executive,” he said. “Nowadays the risk of infection with Covid is even higher. Hence, succession planning is an ongoing process that every institution thinks about. Our board of directors is fully aware of its responsibility and will act appropriately. ”