Kotak Mahindra Bank on April 29 said Uday Kotak's proposed re-appointment in a non-executive role is in the best interest of all stakeholders and complies with regulations.
"We have gone in accordance within the rules and regulations, and we do believe it is in the interest of all the stakeholders," Kotak Mahindra Bank's Group CFO Jaimin Bhatt said during the post-earnings press conference.
Further, he said they have not received any communication from the Reserve Bank of India (RBI) on the reappointment front.
ALSO READ: Kotak Mahindra Bank Q4 net profit rises 26% to Rs 3,495 crore, beats estimates
On April 21, 99 percent or 9,986 shareholders of Kotak Mahindra Bank voted in favour of Uday Kotak taking up the non-executive, non-independent director's role at the bank after he steps down as MD and CEO.
On the appointment front, Experts Moneycontrol spoke to earlier said Veteran banker Uday Kotak is unlikely to face hurdles in taking up the non-executive, non-independent director role after his tenure as managing director and chief executive officer ends.
This is because the three-year cooling-off period norm set by the RBI for the reappointment of an MD, CEO or whole-time director (WTD) will not apply for non-executive positions, they said.
According to an April, 2021, RBI circular, the MD and CEO or whole-time director (WTD) of a bank must undergo a three-year cooling-off period post their tenure, during which the individual cannot not be appointed or associated with the bank or its group entities in any capacity, either directly or indirectly.
Experts, however, point out that the central bank rules do not mention anything about top executives seeking reappointment as board members after retirement.
Earlier today, Kotak Mahindra Bank reported 26 percent jump in its standalone net profit at Rs 3,495 crore for the March quarter. Net profit stood at Rs 2,767 crore in the year-ago period.
The private lender's net interest income (NII) for Q4 FY23 increased to Rs 6,103 crore, from Rs 4,521 crore in Q4 FY22, up 35 percent. Net interest margin (NIM) was 5.33 percent for FY23 and 5.75 percent for Q4 FY23, the bank said in a press release.
Asset quality of the bank improved in the reporting quarter. Gross NPA (non-performing assets) ratio was 1.78 percent and net NPA ratio was 0.37 percent as of March 2023 end. Compared to this, GNPA stood at 1.90 percent and NNPA at 0.43 percent in the December 2022 quarter.
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