The re-appointment of Uday Kotak as Managing Director and CEO of Kotak Mahindra Bank has been approved by the Reserve Bank of India (RBI) for another three years.

Several questions arose about the reappointment, as RBI had earlier released a discussion paper in June this year regarding the governance at commercial banks proposing the capping of the tenure of bank CEOs who are promoters or large shareholders to 10 years. RBI has also approved the reappointment of Prakash Apte as the Part-time Chairman and Dipak Gupta as the joint managing director for a period of three years with effect from January 2021.

Kotak Mahindra Bank responded on a regulatory filing on Monday with the following statement: "We wish to inform you that the Reserve Bank of India (RBI) has approved the re-appointments of Prakash Apte as part-time Chairman; Uday Kotak as MD and CEO; and Dipak Gupta as Joint Managing Director for a period of three years, with effect from January 1, 2021."

Several brokerage houses had earlier anticipated a leadership change at Kotak Mahindra Bank. Uday Kotak has served as the MD of Kotak Mahindra bank for around 17 years and will continue at the position of MD & CEO for the tenure of another three years.