Kotak Mahindra Bank recommends two internal candidates for CEO, sources say

MUMBAI: India’s Kotak Mahindra Bank has recommended two internal candidates to succeed Chief Executive Ashok Vaswani when his term ends next year, according to two sources familiar with the matter.

The private lender, India’s fourth-largest private bank, has submitted the names of executive directors Anup Saha and Paritosh Kashyap to the Reserve Bank of India for approval, the sources said.

The recommendations represent the first step in choosing a successor to Vaswani, who said he would not seek reappointment when his term ends on December 31, 2026, citing personal reasons.

The appointment will be closely watched as Kotak Mahindra Bank under the leadership of Vaswani had set its sights on becoming India’s third-largest private lender by after-tax profit, and the new CEO is expected to accelerate that growth momentum.

India’s banking rules require banks to recommend at least two potential candidates for CEO positions. The regulator can either approve one of the names or seek alternatives if they are deemed unsuitable.

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Reuters could not ascertain which of the two names was the bank’s first choice.

Kotak Mahindra Bank, Saha and Kashyap did not respond to requests for comment.

Vaswani, a former Barclays and Citigroup banker, became CEO on January 1, 2024, succeeding founder Uday Kotak after over two decades. Kotak’s family is also the largest shareholder in the bank, owning 26%.

Saha joined Kotak in January this year after leading non-bank lender Bajaj Finance and currently oversees the retail banking business at Kotak. Kashyap is a Kotak veteran who oversees the wholesale banking business.

Shares of Kotak Mahindra Bank had gained 5% over the last five trading sessions.