Mumbai: Kotak Mahindra Bank on Tuesday said joint managing director KVS Manian has stepped down to “pursue other opportunities in the financial services sector”, barely a week after the Reserve Bank of India (RBI) put business restrictions on the private-sector lender.

A wholetime director, Manian was re-designated joint managing director effective 1 March. Manian, an alumnus of the Indian Institute of Technology (BHU)-Varanasi and Jamnalal Bajaj Institute of Management Studies, Mumbai, had a nearly three-decade stint at Kotak.

“The board has accepted his resignation with immediate effect,” the bank said in a press release.

It announced a new reporting structure as well. The wholesale, commercial and private bank businesses of the lender will now report directly to managing director and chief executive Ashok Vaswani. The asset reconstruction division will report to deputy managing director Shanti Ekambaram, who will also oversee the investment banking and institutional equities businesses.

“Manian has spent over 29 years at Kotak and we are thankful to him for his association and we wish him well in his future endeavours. We are confident of the strong leadership talent at Kotak and our ability to scale our businesses to the next level in times to come,” said Vaswani.

“Notably, MD positions will be vacated in Federal Bank (September 2024) and Bandhan Bank (July 2024), where chances of any external candidate joining, subject to RBIs approval, are high,” said Anand Dama, head of BFSI research at Emkay Global.

Dama said that Manian’s resignation, immediately after being elevated, and the handling of the resignation by the bank, could weigh on the lender’s stock performance already hit by the recent RBI strictures.

Last year, the bank announced that former Barclays veteran Ashok Vaswani will be the new chief executive officer, taking over from founder and billionaire banker Uday Kotak. The Reserve Bank of India approved a three-year term for Vaswani, who took over his new role on 1 January

“I had a short stint working with you Ashok, but I am sure that with such a talented team and with you at the helm, the path ahead is truly transformational,” Manian wrote in his resignation letter, available as part of the bank’s regulatory filing.

Meanwhile, RBI recently barred Kotak Mahindra Bank from onboarding new customers through its online portal and mobile app, and restricted it from issuing fresh credit cards, due to “serious deficiencies” in the bank’s IT system.

As of March-end, the bank had 5.9 million credit cards, adding about a million cards in the last 12 months. India’s largest lender HDFC Bank added 3 million credit cards in the same period, showed data from RBI.

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Published: 30 Apr 2024, 10:32 PM IST