Kotak Mahindra Bank announced in a stock exchange statement on Saturday that Uday Kotak has resigned as managing director and CEO.According to the filing, "Uday Kotak has ceased to be the Managing Director & CEO of the Bank, with effect from September 1, 2023, due to his resignation considered at the Bank's Board meeting held today, and has become a non-executive Director of the Bank."

Dipak Gupta, joint managing director, will serve as CEO through December 31, according to the statement.

With effect from September 1, 2023, Uday Kotak will no longer serve as the bank's managing director and CEO due to his resignation, which was discussed in today's board meeting. Instead, he will serve as a non-executive director, according to the filing.

As Mint has reported, promoters who are managing directors and chief executives or whole-time directors (WTDs) cannot stay for more than 12 years in accordance with RBI's April 2021 guidelines on corporate governance in banks. However, RBI has the option to increase the term to 15 years. The Reserve Bank "shall also take into account the level of progress and adherence to the milestones for dilution of promoters' shareholding in the bank when considering the matter of re-appointing such MD and CEOs or WTDs within the 12/15 years period."

Even though the RBI regulations do not specifically prohibit it, it is unclear if a promoter CEO's appointment as a director on the board after his term is up violates the regulation's intent.