{"id":581,"date":"2020-06-12T21:22:09","date_gmt":"2020-06-12T21:22:09","guid":{"rendered":"https:\/\/bengalnewstimes.com\/rbi-cap-on-ceo-tenure-to-hit-kotak-mahindra-bank-most\/"},"modified":"2020-06-12T21:22:09","modified_gmt":"2020-06-12T21:22:09","slug":"rbi-cap-on-ceo-tenure-to-hit-kotak-mahindra-bank-most","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=581","title":{"rendered":"RBI cap on CEO tenure to hit Kotak Mahindra Bank most"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1978148\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank.jpg\" alt=\"Morgan Stanley in its report said that Kotak Mahindra Bank would have to undergo a CEO transition if the discussion paper is finalised in the current format.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1978148\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank.jpg\" alt=\"Morgan Stanley in its report said that Kotak Mahindra Bank would have to undergo a CEO transition if the discussion paper is finalised in the current format.\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1978148\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank.jpg\" alt=\"Morgan Stanley in its report said that Kotak Mahindra Bank would have to undergo a CEO transition if the discussion paper is finalised in the current format.\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank.jpg 660w, https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/06\/kotak-mahindra-bank-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\"><a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/morgan-stanley-stock-price\/\" rel=\"noopener noreferrer\">Morgan Stanley<\/a> in its report said that <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/kotak-mahindra-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Kotak Mahindra Bank<\/a> would have to undergo a CEO transition if the discussion paper is finalised in the current format.<\/span><\/figure>\n<\/div>\n<p>Private lender Kotak Mahindra Bank will be impacted most, if Reserve Bank of India (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>) limits tenure of chief executive officer (CEO), as per discussion paper released by the regulator, brokerages said in their report.<br \/>Morgan Stanley in its report said that Kotak Mahindra Bank would have to undergo a CEO transition if the discussion paper is finalised in the current format.<\/p>\n<p>Macquarie Securities also said that guidelines were a big negative for Kotak Mahindra Bank as Uday Kotak, being the promoter of the bank, has already served 10 years as CEO\/whole time director.<\/p>\n<p>Similarly, Jefferies said, \u201cThe current joint managing director (MD) of Kotak Mahindra Bank Dipak Gupta could be a prospective internal successor of the private lender.\u201d<\/p>\n<p>Brokerage reports also said that guidelines will not have impact on any other large bank. \u201cNone of the other large private sector banks will have an issue and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/hdfc-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">HDFC Bank<\/a> anyway is seeing a CEO transition soon,\u201d Macquarie Securities said. However, there will be impact on other small private lenders.<\/p>\n<p>Jeferries report mentioned that <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/au-small-finance-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">AU Small Finance Bank<\/a> CEO Sanjay Agarwal will have 7 years of tenure left as per new norms of RBI. \u201cThe banks with professional CEOs like <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/bandhan-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Bandhan Bank<\/a>, Federal Bank and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/rbl-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">RBL Bank<\/a> may have 5-10 years of residual tenure,\u201d Jeferies said.<\/p>\n<p>In a bid to overhaul corporate governance in banks, Reserve Bank of India (RBI) had suggested to separate ownership from management and limit tenure of promoter-chief executive officer (CEO) to 10 years and non-promoter CEO to 15 years in a discussion paper released on Thursday. The regulator had also said that CEOs of banks need to retire by the age of 70 years.<\/p>\n<p>The age limit of 70 has been kept even for non-executive directors and chairman of the bank.The banks can send their comments to RBI on the discussion paper by July 15, 2020.<\/p>\n<p>The discussion paper of the central bank comes after fallout of entities like <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/yes-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Yes Bank<\/a> where several questions were raised on the corporate governance of the bank. Rana Kapoor founded Yes Bank in 2004 and remained MD &amp; CEO of the bank till 2018. Currently, Rana Kapoor is under investigation by Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) for related party transactions under his tenure.<\/p>\n<p>Amit Tandon, founder and MD, IIAS said, \u201cFixing tenures by being prescriptive is RBI\u2019s way of acknowledging that they have failed in their supervision role.\u201d If they were genuinely monitoring banks, they could take each call on a CEOs reappointment based on the merits and not put term limits, he further said.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/rbi-cap-on-ceo-tenure-to-hit-kotak-mahindra-bank-most\/1989919\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Morgan Stanley in its report said that Kotak Mahindra Bank would have to undergo a CEO transition if the discussion paper is finalised in the current format. Private lender Kotak Mahindra Bank will be impacted most, if Reserve Bank of India (RBI) limits tenure of chief executive officer (CEO), as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":582,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/06\/kotak-mahindra-bank.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=581"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/582"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}