Jay Kotak, the elder son of Uday Kotak, is reportedly not in the running to lead Kotak Mahindra Bank.

Uday Kotak’s term as the CEO of the bank ends in December 2023, with whole-time director K.V.S. Manian tipped to be the next head.

But earlier this year, the bank gave more responsibility to Jay, which generated a buzz that the new assignments were part of a long-term succession planning in the bank.

A Bloomberg report quoting Manian said that Jay Kotak is not a contender for the CEO. ``Jay is still young. He will have to work his way up on merit,’’ Manian said. Kotak Mahindra Bank is likely to announce its new CEO pick in six months, he said.

The top management had earlier also indicated that Jay is not in the running for the chief executive’s post.

Jay Kotak currently coheads the Kotak811 business. Prior to that he was associate vice-president of the bank’s retail banking division and an associate at its investment banking division. The Harvard alumnus was a business analyst at Mckinsey & Company and a summer analyst at Goldman Sachs before joining Kotak Mahindra Bank.

Sources close to the bank said that the decision on the new CEO rests with the nomination & remuneration committee and its board, apart from the Reserve Bank of India (RBI).

In December 2021, the banking regulator had approved the reappointment of Uday Kotak as managing director of Kotak Mahindra Bank for three more years. The RBI has capped the tenure of a bank chief at 15 years. Kotak has been the bank’s managing director for around 18 years.

Kotak Mahindra Bank saw its net profits rising 27 per cent to Rs 2,581 crore for the second quarter ended September 30, 2022, boosted by strong margins and loan growth.

On a consolidated basis, the fourth largest private sector lender, posted a 21 per cent rise in net profit at Rs 3,608 crore. Its gross non-performing assets improved to 2.08 per cent of gross advances against 3.19 per cent in the year-ago period.