Ashok Vaswani's appointment as Kotak Mahindra Bank's CEO approved by RBI

Reserve Bank of India (RBI) has given its approval for appointment of Ashok Vaswani as Managing Director and Chief Executive Officer (MD & CEO) of Kotak Mahindra Bank. move follows departure of Uday Kotak, veteran banker and co-founder of bank, who stepped down from his role last month.

Vaswani's tenure as MD & CEO will span three years, commencing from date he formally takes office, which must occur no later than January 1, 2024. appointment is subject to approval from bank's shareholders, as indicated by private lender."I thank board for entrusting me with responsibility of leing Kotak Mahindra Bank's journey to next phase of growth. I am excited and honoured to carry forward legacy of Uday who has built this world-class institution," Vaswani said.

About Ashok Vaswani

Vaswani was CEO of Barclays Bank, UK and reon CEO of ir global consumer, private, corporate and payments businesses and also a member of its group executive committee. He has served as CEO of Citigroup Asia Pacific and a member of Citigroup global operating and management committees.

Like Uday Kotak, he is also an alumnus of city's Sydenham College of Commerce and Economics. Vaswani is also a qualified chartered accountant and company secretary.

Kotak was set to retire from his executive role in December. However, it was cut short four months ahe of schedule. His early exit from country's fourth-largest bank was cited as a personal reason.

"Succession at Kotak Mahindra Bank has been foremost on my mind, since our Chairman, myself and Joint MD are all required to step down by year-end. I am keen to ensure a smooth transition by sequencing se departures. I initiate this process now and step down voluntarily as CEO," said Kotak on September 2, soon after resigning, on X. 

This came as Reserve Bank of India capped tenure of a managing director and chief executive officer at 15 years in private sector banks. This is due to RBI's norms on leership appointment which was reviewed after Yes Bank debacle.

Kotak, whose holding in bank stands at 26 per cent, has become a non-executive director of bank. 

With over three deces of experience in banking industry, Vaswani is recognised as a seasoned professional in this field. His career has encompassed leership positions at both Citigroup and Barclays. Notably, he served as Chief Executive Officer of Barclays Bank, UK, and subsequently took charge of ir global consumer, private, corporate, and payments divisions.

(With PTI Inputs)