Industry

Uday Kotak redesignated as MD & CEO of Kotak Mahindra Bank

Uday Kotak. File

Uday Kotak. File   | Photo Credit: Reuters

Mr. Kotak was the only official among private banks to have a Vice Chairman designation. All others have MD & CEO designation.

The board of directors of Kotak Mahindra Bank has redesignated Uday Kotak as Managing Director and Chief Executive Officer with effect from 1 May, 2018. Mr. Kotak was earlier executive Vice Chairman and Managing Director.

"The Board of Directors has re-designated Mr. Uday Kotak as Managing Director & CEO with effect from 1 May 2018, in line with good governance practice," the bank said in the notification to the exchanges.

Mr. Kotak was the only official among private banks to have a Vice Chairman designation. All others have MD & CEO designation.

In 2015, when IDFC Bank, while commencing the operations, also proposed Rajiv Lall as Vice Chairman and Managing Director. However, later it was changed to MD & CEO as desired by Reserve Bank of India.

Kotak Mahindra Bank also said Shankar Acharya, part-time Chairman, will retire on 19th July 2018 and he is not seeking reappointment as he has completed 70-years-of-age. He has been director of the Bank since May 2003 and part-time Chairman since July 2006.

"The bank's board had appointed Prakash Apte, 63 , as part-time Chairman of the Bank post Dr. Acharya's retirement for a period up to 31st December, 2020, subject to regulatory approvals," the lender said.

Mr. Apte is a non-executive Independent Director of the Bank since March 2011 and also Independent Director on the Board of Kotak Mahindra Life Insurance Company Limited.

Q4 profit up 15%

Kotak Mahindra Bank Ltd. reported a 15% rise in fourth-quarter net profit on higher interest and fee incomes and as its bad loans fell.

Net profit rose to ₹1,124 core ($169.34 million) for the three months ended March 31 from ₹976 crore a year earlier, the Mumbai-based bank, fifth-biggest among the country’s private sector lenders, said in a statement.

That was in line with analysts’ expectations of ₹1,129 crore net profit for the lender, which is 30% owned by its billionaire chief executive Uday Kotak.

Kotak Mahindra’s gross bad loans as a percentage of total loans dropped to 2.22% as of end-March from 2.31% in the preceding quarter and 2.59% a year earlier. Net non-performing loans, after provisions, were 0.98% of total loans as of end-March.

Net interest income for the quarter rose 19% from a year ago to ₹2,580 crore as loans as of end-March grew 25% from a year earlier. Net interest margin, however, fell to 4.35% in the March quarter from 4.63% a year earlier.

(With inputs from Reuters)

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Printable version | Apr 9, 2020 3:50:29 AM | https://www.thehindu.com/business/Industry/uday-kotak-redesignated-as-md-ceo-of-kotak-mahindra-bank/article23727612.ece

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