RBI approves Dipak Gupta as Kotak Bank interim MD for 2 months

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Reserve Bank of India (RBI), on Thursday, approved the appointment of Dipak Gupta as the interim MD and CEO of Kotak Mahindra Bank for two months, effective September 2.

“The Reserve Bank of India has, vide its letter dated September 7, 2023, approved the appointment of Mr. Dipak Gupta as the interim Managing Director & CEO of Kotak Mahindra Bank Limited (“Bank”), for a period of two months, with effect from September 2, 2023,” the bank notified the exchanges on Friday.

The approved tenure is shorter than the proposed appointment schedule of four months till December 31, 2023, when Gupta is set to retire. As per the current approval, Gupta’s term will last till November 1, 2023.

Also Read | Kotak Mahindra’s shares down on change in top leadership

Shares of Kotak Bank were 0.2 per cent lower today at Rs. 1,785.10 on the NSE.

In a surprise move on September 2, Uday Kotak announced his decision to step down as the MD and CEO of the bank, four months ahead of the end of his tenure on December 31, citing personal reasons and the need to sequence the management shift.

Both Joint MD Gupta and Chairman Prakash Apte are also set to retire at the end of the calendar year. Kotak will continue as a non-executive director on the board of the bank.

“Although I still have few months to go, I tender my resignation as MD & CEO of the bank with immediate effect. I have mulled over this decision for some time and believe this is the right thing for the institution,” Kotak said in a letter to shareholders adding that he’s looking forward to his non-executive role.

The bank has submitted two candidates to the central bank to succeed Kotak. While RBI’s decision on the same is awaited, both candidates are believed to be internal–whole time directors KVS Manian and Shanti Ekambaram.