Responding to a question on KVS Manian’s exit, Kotak Mahindra Bank Managing Director and CEO Ashok Vaswani said Manian has no offers at the moment.
« To the best of my knowledge, Manian doesn’t have anything in hand at the moment, as far as I know. Obviously you’ll have to ask Manian that question, but I’m not aware of anything like that, » he said. said at a post-results press conference on May 4.
« Manian wanted to pursue other opportunities in the financial sector…the timing made things a little difficult. He was in the business for a very long time, » Vaswani said.
Manian, a full-time director and co-chief executive officer, resigned on April 30 with immediate effect to pursue other opportunities in the financial services space.
« I hereby tender my resignation from the services of Kotak Mahindra Bank to pursue other opportunities in financial services which I am exploring. Therefore, I would also retire from the board of directors of the bank, » he had stated in the letter.
Manian had been with Kotak Mahindra Bank for almost three decades. In the letter, he had also thanked Ashok Vaswani and wished him well.
The RBI’s directive on Kotak Mahindra Bank has had an impact on the lender’s franchise and reputation, although its financial impact is expected to be minimal, Vaswani said on May 4. The RBI had asked Kotak to stop adding customers digitally and issuing credit cards due to lapses in its IT system. Infrastructure.
The Reserve Bank of India’s order has obviously impacted both our franchise (and) our reputation, which is not good, » Vaswani said. « …we are committed to coming back strongly; it’s our number one priority.
After the RBI order and the resignation of KVS co-chief executive Manian this week, analysts expressed concerns that Kotak’s heavily digital business model meant the ban would hurt its growth in the medium term , leading to a 16% drop in its stock price over the past. six negotiation sessions.
The bank will double its efforts, resources and money to resolve IT-related issues, Vaswani said, adding that the bank currently spends 10% of its total expenditure on IT.
Over the last two years, overall spending on technology has increased, Vaswani said, adding that « the bank will soon hire an external auditor to assess the overall technology architecture, as mandated by the RBI. »
Private sector lender Kotak Mahindra Bank reported 18.22% YoY (YoY) increase in net profit or profit after tax (PAT) at Rs 4,133.30 in Q4 FY24 Its fourth-quarter net interest income (NII) grew 13% year-on-year to Rs 6,909 crore, while its net interest margin (NIM) grew 5.28% from 5.22%. in the previous quarter.
The Board of Directors of Kotak Mahindra Bank has recommended a dividend of Rs 2 per equity share of face value of Rs 5, for the financial year ending March 31, 2024, subject to shareholder approval.