Kotak Mahindra Bank CEO Addresses KVS Manian's Exit and RBI Directive
In a post-results press conference on May 4, Kotak Mahindra Bank's MD and CEO, Ashok Vaswani, addressed the recent departure of KVS Manian and the impact of the RBI directive on the bank.
Vaswani clarified that Manian does not currently have another offer lined up. He acknowledged Manian's long tenure with the bank and his desire to pursue other opportunities in the financial sector. Vaswani expressed gratitude for Manian's contributions and wished him well in his future endeavors.
Vaswani acknowledged that the RBI directive, which restricts Kotak Mahindra Bank from adding new digital clients and issuing credit cards due to IT infrastructure concerns, has impacted the bank's franchise and reputation. However, he emphasized the bank's commitment to addressing these issues and regaining its strong position.
Vaswani outlined the bank's plans to double its efforts, resources, and spending on IT-related issues. This includes hiring an external auditor to assess the overall technology architecture, as mandated by the RBI.
Despite the challenges, Kotak Mahindra Bank reported a 18.22% year-on-year increase in net profit for Q4FY24. The bank's net interest income and net interest margin also saw positive growth. The board of directors recommended a dividend of Rs 2 per equity share for the year ended March 31, 2024.
Vaswani expressed confidence in the bank's ability to overcome these challenges and emerge stronger. He emphasized the bank's commitment to delivering value to its customers and shareholders.