Kotak Bank backs its own for the top job; RBI call in focus

economictimes.indiatimes.com:

Uday Kotak’s successor as chief executive of the bank he founded could be quicker than otherwise — at least in theory — since the due diligence on ‘fit and proper’ criterion for both internal candidates isn’t expected to be unusually lengthy. Kotak Mahindra Bank’s nomination and remuneration committee has offered the Reserve Bank of India (RBI) the names of two internal candidates — KVS Manian and Shanti Ekambaram — to succeed Asia’s richest banker at the corner office at India’s third-most valued private lender.

The nominations are seen as a departure of sorts from recent trends wherein most lenders offered at least one external candidate as potential successors to outgoing chief executives.

Central bank regulations require proposals for the appointment of a new MD & CEO to include at least two names in order of preference. These proposals should be submitted to the RBI at least four months before the current incumbent's term expires, according to the RBI's 2020 guidelines for the appointment of managing directors and chief executive officers.
“We have submitted our applications for CEO and chairman well in time,” Uday Kotak told ET in an interview.

“For the CEO, we have submitted an application with two names in order of priority — as required by the RBI — and also for the non-executive chair.”
The RBI does not impose specific requirements on whether the candidate must be internal or external. Instead, the RBI assesses the individual's suitability, capacity, track record, and overall qualifications before giving its stamp of approval.

This assessment process typically takes 90-120 days during which the RBI conducts thorough due diligence. Ultimately, the RBI makes a final decision based on this assessment.