NEW DELHI: Private sector lender Kotak Mahindra Bank has settled its leadership issue for now as it announced on Saturday that the Reserve Bank of India (RBI) has approved the appointment of veteran banker Ashok Vaswani as the bank’s next managing director and chief executive officer (MD & CEO). This is for a period of three years from the date of taking charge, which will not be later than January 1, 2024.
Vaswani’s appointment comes after a series of top-tier hirings made by the lender in various departments. Vaswani will replace Dipak Gupta who was appointed as interim MD and CEO of Kotak Mahindra Bank earlier this year. The big changes at India’s fourth-largest private bank are taking place after Uday Kotak, who founded the bank in 1985 and led it for decades, resigned as the MD and CEO in September, before the end of his term in December.
Kotak’s early exit from the bank was a result of RBI’s new rule capping the tenure of a private bank’s chief at 15 years. Uday, who is still on the board of the bank, had then spoken about a smooth succession plan.
Kotak said “I am delighted that the RBI has approved our recommendation, Ashok Vaswani, as the next MD & CEO of Kotak Mahindra Bank. Ashok is a world-class leader and banker with a digital and customer focus. I am proud that we bring a “Global Indian” home to build Kotak and India of tomorrow.”
Vaswani was CEO of Barclays Bank, UK and subsequently CEO of their Global Consumer, Private, Corporate and Payments businesses and Member of the Group Executive Committee. Earlier, he was CEO of Citigroup Asia Pacific and member of the Citigroup Global Operating & Management Committees.
Currently, he is President of Pagaya Technologies Ltd - a US-Israeli AI Fintech. Vaswani is a Bachelor of Commerce, Economics and Accountancy, from the Sydenham College of Commerce and Economics (Bombay University), CA from the Institute of Chartered Accountants of India, CS from the Institute of Company Secretaries of India and Executive Education from Stanford University Graduate School of Business.
Vaswani said, “I am excited and honoured to carry forward the legacy of Uday who has built this world-class institution. With our proven leadership team we will take the bank to new heights. We will ensure that Kotak Mahindra Bank plays a meaningful role in India’s journey to being one of the top 3 economies in the world in the next 5 years, delivering shareholder value.”