The Reserve Bank of India (RBI) has approved the appointment of Ashok Vaswani, an outsider, as the lender’s next managing director and chief executive officer.

Kotak Mahindra Bank, which currently has a market cap of nearly Rs 3.52 lakh crore, said in a regulatory filing that his appointment will be for a period of three years from the date of taking charge, which shall not be later than January 1, 2024.

His appointment is subject to shareholders’ approval.

Vaswani, who is an international banker, was the chief executive officer of Barclays Bank, UK, and subsequently CEO of their global consumer, private, corporate and payments businesses and member of the group executive committee. Earlier, he was CEO Citigroup Asia Pacific and member of the Citigroup global operating & management committees. He also built and ran various country and regional businesses across geographies.

At present, he is president of Pagaya Technologies Ltd — a US-Israeli AI Fintech. He is also on the board of the London Stock Exchange Group, the SP Jain Institute of Global Management, UK and supports various philanthropic organisations, including Pratham, and Lend-A-Hand.

“I am delighted that the RBI has approved our recommendation, Ashok Vaswani, as the next MD & CEO of Kotak Mahindra Bank. Ashok is a world class leader and banker with digital and customer focus. I am proud that we bring a “Global Indian” home to build Kotak and India of tomorrow,” Uday Kotak, founder and director, Kotak Mahindra Bank, said.

Last month, the bank’s founder Uday Kotak had resigned as its managing director and CEO with effect from September 1. This was full four months ahead of his scheduled retirement on December 31.

The bank had then sent two names “in order of priority’’ to the RBI. The buzz so far was that directors K.V.S. Manian and Shanti Ekambaram were the frontrunners to succeed Kotak for the top job.

“I thank the board for entrusting me with the responsibility of leading Kotak Mahindra Bank’s journey to the next phase of growth. I am excited and honoured to carry forward the legacy of Uday who has built this world-class institution.

“With our proven leadership team we will take the bank to new heights. We will ensure that Kotak Mahindra Bank plays a meaningful role in India’s journey to being one of the top three economies in the world in the next 5 years, delivering shareholder value. At a personal level, l am delighted to come back home,’’ Vaswani said.

Observers said that after he takes charge, the keychallenges before Vaswani will be to adapt to the Kotak Mahindra Bank culture, continue the growth trajectory amid tough competition both from the private sector and PSU peers, and also retain his independence amid the presence of Kotak, who will be in the bank’s board as a non-executive director.

Kotak led the bank for two decades as he was its CEO from 2022-2023.