The ​bank's shares closed at Rs 409 on Thursday.

Kotak Mahindra Bank MD and CEO Ashok Vaswani to step down at year-end

Kotak Mahindra Bank has begun searching for a successor after CEO Ashok Vaswani said he will not seek reappointment when his term ends in December 2026. The move comes as the lender seeks faster growth after regulatory scrutiny and may keep investors focused on leadership continuity.

by · India Today

In Short

  • The bank said succession will be completed within regulatory timelines
  • Vaswani, a former Barclays and Citigroup banker, took charge in January 2024
  • Kotak is emerging from regulatory scrutiny while pushing for faster growth

Kotak Mahindra Bank said on Saturday its CEO and managing director, Ashok Vaswani, will not seek reappointment after his term ends on December 31, 2026 for personal reasons, prompting India's fourth-largest private lender to begin a search for a successor.

The bank said the process will be completed within applicable regulatory timelines. Vaswani, a former Barclays and Citigroup banker, took charge as CEO on January 1, 2024.

The succession process comes as Kotak Mahindra Bank emerges from a period of regulatory scrutiny and looks to accelerate growth. The bank is aiming to become India's third-largest private lender by after-tax profit, Vaswani told Reuters earlier this month.

His resignation adds another bank to the list of large lenders with management uncertainty and could lead to a correction in the stock, Executive Director Anand Dama from market research firm Nuvama Institutional Equities said.

"Vaswani served for just one term and hopefully a credible long-term replacement, either internally or externally, should ease the concerns and then the stock should track its fundamentals," he said.

Kotak Mahindra reported a 13% rise in its net profit to Rs 40.27 billion in the fourth-quarter of 2025-26, helped by stronger lending growth and lower provisions.

In an internal letter to employees, seen by Reuters, Vaswani said he would work with the chairman and the board, calling the six months ahead "some of the most important months in Kotak's journey."

The bank's shares closed at Rs 409 on Thursday.

- Ends