Business
Updated : April 27, 2021 09:04 AM IST
Brokerages consider that the Reserve Bank of India’s (RBI) new guidelines over the tenure of MDs and CEOs of personal banks will affect Kotak Mahindra Bank probably the most. Here’s what they are saying:
Nomura says RBI’s rule w.r.t cap on tenure will affect Kotak Mahindra Bank. The financial institution’s MD & CEO Uday Kotak had a dominant hand in driving the narrative behind the inventory within the earlier decade and his absence from an government function could cap any additional enchancment in valuation a number of, Nomura stated.
Jefferies says Kotak Mahindra Bank could also be first affected by RBI’s MD & CEO cap rule. RBL Bank and others may be affected however with a lag.
JPMorgan feels the brand new guidelines by RBI are optimistic for governance structure however may dissuade license aspirants.
CLSA stated that Kotak Mahindra Bank would be the most impacted as its present MD’s & CEO’s tenure exceeds the 12-15-year cap. Deputy MD Dipak Gupta’s tenure additionally exceeds the bounds prescribed. Both their tenures finish in December 2023 after which, they’re unlikely to get an extension. Thus CLSA expects a management transition for Kotak Bank in January 2024.
Published : April 27, 2021 09:04 AM IST