Monday, October 3, 2022

The stock of Kotak Mahindra Bank has dropped as the RBI has imposed a term limit on founder-CEOs.

Following the Reserve Bank of India’s decision to limit a bank’s founder’s tenure as chief executive officer to 15 years, Kotak Mahindra Bank Ltd.’s stock took the biggest hit among peers.

According to a note by Suresh Ganapathy, an analyst at Macquarie Capital Securities Ltd, this gives Uday Kotak, the world’s wealthiest banker, less than three years to find a successor. On January 1, 2024, Kotak’s current term as CEO of India’s fourth-largest private lender will come to an end.

Since Kotak has already served as managing director and chief executive officer of the lender for 15 years, he will not be eligible for reappointment when his term ends. The note was written by Ganapathy. In addition, second-in-line joint managing director Dipak Gupta “may not be qualified to succeed Kotak as CEO because the 15-year limit applies to all full-time directors on the board,” according to the report.

ALSO CHECK: Get a tremendous discount with Firsrtcry Coupon Code and Mamaearth Coupons

At 1:29 p.m. in Mumbai, Kotak Mahindra Bank’s stock was down 1.5 percent, compared to a 0.6 percent increase in a banking stock index.

The RBI said in a statement Monday that lenders will have until Oct. 1 to comply with the new regulations, and founder-CEOs will be allowed to finish their current terms.

According to the Bloomberg Billionaires Index, Kotak has a net worth of $14.4 billion. In 1985, the banker established an investment firm, which later became a lender in 2003, and Kotak has been the bank’s chairman since then.]

The RBI had granted Kotak a three-year extension to continue as CEO of Kotak Mahindra Bank, which began on January 1. Emails and phone calls to the lender’s representatives were not immediately returned.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Most Popular

spot_img

Latest

Use of phone SIMs will be heavily prosecuted; users of applications like WhatsApp and Telegram who use false IDs risk receiving a year in...

Making a fake ID, using a bogus identity on applications like WhatsApp, Telegram, and Signal, or obtaining a SIM card by providing false documentation...

RBI Repo Rate: A shock to the public before the festive season, EMI will be expensive, RBI increased repo rate by 50 basis points

Inflation Rate: The Reserve Bank of India (RBI) has increased the repo rate by 50 basis points. This will also make your EMI costlier....

Sugar Production: Now the price of sugar will be lower, the sugar mill going to open next month, know the reason

Excess production of sugar in India: There are signs of a reduction in the price of sugar in the country. The operation of sugar...

Due to a current supply issue, the decision to require 6 airbags in cars was postponed, according to Gadkari. The rule will now take...

The decision to require six airbags in M1 category vehicles with up to eight seats has been postponed by the government by one year....

Actress Neha Malik wreaked havoc in just a top, striking a killer pose while sitting near a swimming pool.

Neha Malik Photo: Bhojpuri actress Neha Malik is constantly criticized for her appearance. The actress has made a name for herself in the Bhojpuri...

Most Popular

Subscribe

* indicates required