Shares of Kotak Mahindra Bank rose to a new all-time high of Rs 1,949 on Tuesday on NSE after the Reserve Bank of India (RBI) approved the re-appointment of Uday Kotak as the managing director and chief executive officer (CEO).
In a stock exchange filing, the private bank informed that its founder Kotak, who has served as its head for 17 years, will continue at the position of MD and CEO for another 3 years.
After RBI released a discussion paper in June that proposed capping the tenure of bank CEOs who are promoters or large shareholders at 10 years, there were speculations that there would be a change in leadership at Kotak Mahindra Bank.
Meanwhile, RBI has also granted approval for re-appointing Prakash Apte as part-time Chairman and Dipak Gupta as joint MD for a period of three years with effect from January 2021.
The board of directors and shareholders of the bank had approved these re-appointments, at their respective meetings held on 13 May 2020 and 18 August 2020.