Behind KVS Manian's sudden exit from Kotak Mahindra Bank

Kotak Mahindra Bank informed the banal exchanges precocious Tuesday that it had accepted Manian’s resignation with contiguous effect, stating that helium had “stepped down to prosecute different opportunities successful the fiscal services sector".

It appears, however, that Manian, 62, who has spent astir 3 decades astatine the slope and had been successful information for the apical role, whitethorn not person anticipated having to permission immediately. 

Manian’s exit comes astatine a clip erstwhile Kotak Mahindra Bank is scrambling to get its recognition paper operations backmost connected its feet pursuing the Reserve Bank of India’s censure and conscionable arsenic the lender was settling successful nether its chief, Ashok Vaswani.

On Tuesday, the bank’s committee held a 30-minute gathering connected Manian’s exit pursuing which it accepted his resignation with contiguous effect, according to its banal speech notification. The committee is expected to conscionable successful 4 days to see the lender’s fourth-quarter and full-year fiscal results.

There has been speculation that Manian had concerns astir his caller relation astatine Kotak Mahindra Bank, and that helium was successful the moving to pb different lender. His resignation astatine this moment, however, has travel arsenic a daze to banking manufacture insiders, particularly arsenic the Reserve Bank of India hasn’t confirmed his sanction for different position, accidental radical acquainted with the developments.

Manian did not respond to calls and substance messages from Mint. Kotak Mahindra Bank did not reply to emailed queries.

A speedy transition

Manian successful his resignation missive indicates helium was consenting to service a announcement period. “I’m blessed to assistance and facilitate the modulation successful a mode that you consciousness comfy with. Accordingly, bash fto maine cognize the day by which I tin beryllium relieved," Manian said successful the letter, disposable arsenic portion of the bank’s regulatory filing.

Last week, RBI barred Kotak Mahindra Bank from onboarding caller customers done its website oregon mobile app, and restricted it from issuing caller recognition cards citing “serious deficiencies" successful its exertion system.

Also read: Kotak indispensable enactment accelerated to flight RBI’s cyber-risk clamps

While RBI’s enactment whitethorn not person had a bearing connected Manian’s exit, Kotak Mahindra Bank has announced a caller reporting structure, its 2nd since February. 

The wholesale, commercialized and backstage slope businesses, which Manian was heading, volition present straight study to the bank’s caller managing manager and main enforcement Ashok Vaswani.

The plus reconstruction part volition study to lawman managing manager Shanti Ekambaram, who volition besides oversee the concern banking and organization equities businesses. Ekambaram, who besides has astir 30 years astatine the bank, was named lawman managing manager successful February arsenic portion of a restructuring under Vaswani, who took complaint connected 1 January.

A loyalist’s exit

For Manian, laminitis Uday Kotak’s trusted adjutant and semipermanent loyalist, an exit from Kotak Mahindra Bank whitethorn person been successful the works for sometime, according to media reports. 

NDTV Profit reported successful February that Manian was being considered, among others, for the CEO’s presumption at Federal Bank erstwhile incumbent Shyam Srinivasan steps down successful September. The 2 different names apt to beryllium considered are Federal Bank’s enforcement directors Shalini Warrier and Harsh Dugar.

That said, Federal Bank is yet to officially nonstop the names of imaginable candidates for its CEO relation to RBI, according to a banker who spoke connected information of anonymity. Typically, the regulator takes 2-3 months to o.k. a candidate.

“Unless Manian has received an informal assurance from the slope oregon RBI, it doesn't marque consciousness for him to resign truthful soon," said a Kotak Mahindra Bank executive.

Another banker said the quality of Manian's abrupt exit from Kotak Mahindra Bank has travel arsenic a shock. 

“Manian was not blessed being No:2, and helium believes helium could enactment for immoderate much time. Asking idiosyncratic similar Manian to permission instantly is not akin to Kotak's culture; it is akin to a overseas bank," said this banker. “That said, the committee indispensable person thought from a governance position that it is amended to inquire him to permission if helium is joining competition."

Also read: Turning astir Kotak Bank’s banal volition beryllium the existent trial of Vaswani’s leadership

“Manian was besides successful the moving for Axis Bank CEO successful 2019. Clearly, helium had aspirations to go a CEO," said different banker who has worked with Manian. “It was aft that that Uday made him a whole-time committee member."

In February, soon aft taking charge, Vaswani announced a enactment reshuffle, elevating Manian arsenic associated managing manager and Ekambaram arsenic lawman managing director. This was seen arsenic a determination to apprehension elder absorption attrition pursuing the resignation of Uday Kotak past year.

Uday Kotak had stepped down successful September, 4 months earlier the extremity of his term, due to the fact that of the cardinal bank’s regularisation capping the tenure of a backstage assemblage bank's MD and CEO astatine 15 years.

Manian initially had been considered the frontrunner to regenerate Uday Kotak arsenic the CEO. The RBI, however, decided to spell with Vaswani, a planetary banker with acquisition astatine Barclays Plc successful the UK and Citigroup successful the Asia-Pacific region.