Kotak’s Vaswani hopes that NRC will broaden CEO search beyond internal bench
Mumbai: Kotak Mahindra Bank’s search for its next chief executive is likely to extend beyond its internal leadership ranks, with outgoing managing director and chief
Mumbai: Kotak Mahindra Bank’s search for its next chief executive is likely to extend beyond its internal leadership ranks, with outgoing managing director and chief executive officer Ashok Vaswani saying that he expects the Nomination and Remuneration Committee (NRC) to look broader while choosing his successor. Vaswani, who will step down as the bank chief in December, said during its June-quarter earnings media call that the board and the NRC were very conscious of regulatory timelines and would submit applications to the Reserve Bank of India accordingly. “…Internally we have a very strong bench, but I’m sure the NRC will look broader,” Vaswani said during a media call on Saturday. Quick answers to key questions • 5 QUESTIONS 1 What changes are expected in Kotak Mahindra Bank's CEO search process? ⌵ Kotak Mahindra Bank's search for its next CEO will likely extend beyond internal candidates, as the Nomination and Remuneration Committee is expected to consider a broader range of applicants. 2 Why is Ashok Vaswani stepping down as CEO of Kotak Mahindra Bank? ⌵ Ashok Vaswani is stepping down due to professional and personal reasons, including the compelling personal aspect of becoming a grandfather and family commitments abroad. 3 How does Kotak Mahindra Bank's strategy for FCNR deposits differ from others? ⌵ Kotak Mahindra Bank aims to mobilize FCNR-B deposits by leveraging its presence in international financial hubs like GIFT City and partnering with banks across various regions, targeting strong demand from non-resident Indians.
4 What impact has geopolitical tension in West Asia had on Kotak Mahindra Bank? ⌵ Geopolitical tensions in West Asia have negatively impacted capital markets, causing IPO delays and affecting the bank's investment banking business, although they have yet to see signs of stress in the loan portfolio. 5 What financial metrics indicate Kotak Mahindra Bank's asset quality improvement? ⌵ Kotak Mahindra Bank's gross non-performing asset (GNPA) ratio improved to 1.18% from 1.48%, and the net NPA ratio eased to 0.27% from 0.34%, indicating strengthened asset quality. Usually, bank boards send a list of candidates for the top post to the central bank about six months before the incumbent’s tenure ends. Typically, banks submit at least three names, including internal and external candidates, for the regulator’s consideration. Vaswani, who took over as Kotak Mahindra Bank’s first long-term non-promoter CEO in January 2024, said his decision to step down was driven by both professional and personal considerations. “There is never a good time to call it a day,” he said, adding that over the past three-and-a-half years the bank had undertaken ‘a lot of heavy lifting’ by rebuilding its management team, addressing issues in its unsecured lending businesses, and strengthening its liabilities franchise. “I think the bank and the group are very well set now to accelerate our journey, so it may not be a bad time to step away,” he said.
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