Why did RBI shoot down Uday Kotak’s top picks for a successor?

By picking an outsider like Ashok Vaswani, the central bank wants Kotak Mahindra Bank to usher in a larger leadership change and emerge from its founder’s shadow.

Uday Kotak is by far India’s smartest banking entrepreneur. He also shares a good rapport with those in power. But when it came to choosing his successor to head Kotak Mahindra Bank, he didn’t get his say.

The Reserve Bank of India did not pay heed to the top two options sent in by the bank for Kotak's successor—whole-time directors K.V.S. Manian and Shanti Ekambaram. Instead, the third and last option, Ashok Vaswani, a former Barclays and Citigroup executive, got the nod on Saturday and is set to join the bank within the next two months for a three-year tenure.  …

Author

Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

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furquan@mailtmc.com

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