(Updates with particulars, background all through)

By Siddhi Nayak and Ira Dugal

MUMBAI, Oct 21 (Reuters) – India’s central financial institution has authorized the appointment of veteran banker Ashok Vaswani as managing director and chief government of Kotak Mahindra Bank , the personal lender stated in an alternate submitting on Saturday.

The appointment, topic to shareholders’ approval, is for a interval of three years after Vaswani begins his time period, which won’t be later than Jan. 1, 2024, stated the financial institution, the fourth largest Indian lender by market capitalisation.

Vaswani is a world banker with expertise spanning for 3 and a half many years. He was CEO of Citigroup Asia Pacific, and extra just lately, CEO of Barclays.

Current regulatory guidelines mandate that personal banks suggest not less than two candidates with the Reserve Bank of India (RBI) for the put up of MD and CEO not less than 4 months earlier than the expiry of the time period of workplace of the current incumbent.

Vaswani’s appointment comes after billionaire Uday Kotak, who based Kotak Mahindra Bank, resigned because the MD and CEO final month in a shock transfer, citing private causes.

Kotak’s time period was attributable to finish in December. India’s banking laws restrict the tenure of chief executives to 12 years if they’re additionally giant shareholders.

Kotak, nevertheless, continues to be on the financial institution’s board as a non-executive director.

Dipak Gupta, at the moment the managing director and CEO, will perform the chief government duties till Dec. 31, the financial institution had stated final month.

“I am delighted that the RBI has approved our recommendation, Ashok Vaswani, as the next CEO of Kotak Mahindra Bank,” Kotak stated within the submitting, describing him as a “world class leader” with digital and buyer focus.

Vaswani’s appointment comes as a shock as a result of most analysts had anticipated an insider to succeed Kotak.

At the identical time, that they had flagged issues that Kotak’s presence would loom giant over his successor if an inside candidate was chosen for the put up.

Gupta stated he didn’t count on senior-level attrition on the financial institution: “The idea was to bring in global talent,” he stated on a post-earnings media name on Saturday.

KVS Manian and Shanti Ekambaram, the 2 most senior bankers at Kotak Mahindra Bank, will stay on the board and hold their present roles, Gupta added. (Reporting by Siddhi Nayak and Ira Dugal; Editing by William Mallard and Clelia Oziel)