Kotak Mahindra Bank has issued an official clarification to stock exchanges regarding the alleged Rs 160-crore fixed deposit fraud linked to Panchkula Municipal Corporation, confirming that the incident has no material impact on the bank's operations under SEBI regulations. The bank's formal response addresses recent media reports while outlining its cooperation with investigating authorities.

Official Regulatory Clarification

In its communication to BSE and NSE dated March 27, 2026, Kotak Mahindra Bank provided a comprehensive clarification on the fraud allegations. The bank explicitly stated there is no material impact in terms of provisions under Regulation 30(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Examination and Cooperation Process

Following instructions from the Municipal Corporation of Panchkula, Kotak Mahindra Bank is examining the matter comprehensively. The bank has informed and is cooperating fully with the Municipal Corporation, government authorities, and law enforcement agencies throughout this process.

Stakeholder Communication

The bank's proactive approach in addressing the media reports through official exchange filings demonstrates its commitment to transparency and regulatory compliance. By providing clear statements on the material impact assessment and cooperation status, the bank ensures stakeholders remain informed about developments while maintaining operational integrity.

The formal clarification, signed by Company Secretary Avan Doomasia, reinforces the bank's established protocols for managing such situations while maintaining full transparency with regulatory authorities and market participants.

Kotak Mahindra Bank Limited has completed the dispatch of its postal ballot notice on March 25, 2026, seeking shareholder approval for the appointment of Mr. Ramesh G. Iyer as Independent Director. The bank has also published newspaper notices regarding the completion of the postal ballot dispatch process.

Postal Ballot Dispatch Completion

The bank informed stock exchanges on March 26, 2026, about the completion of postal ballot notice dispatch. The notice was published in Financial Express (English daily) and Navashakti (Marathi daily) newspapers, confirming that the postal ballot notice was dispatched on March 25, 2026.

Director Appointment Details

The bank appointed Mr. Ramesh G. Iyer (DIN: 00220759) as Additional Director on February 17, 2026, following a recommendation from the Nomination and Remuneration Committee. His appointment aims to augment the Board's composition with complementary skills and expertise.

Professional Background

Mr. Iyer brings extensive experience from over four decades with the Mahindra Group. He played a pivotal role in building Mahindra & Mahindra Financial Services Limited (MMFSL) into one of India's leading rural finance institutions. In his final role, he served as MMFSL's Vice Chairman & Managing Director and as President - Financial Services Sector & Member of the Group Executive Board at Mahindra and Mahindra Limited until his superannuation in April 2024.

As CEO of MMFSL since 1999, Mr. Iyer led the company's growth with a strong focus on rural and inclusive finance, significantly scaling its assets, reach, and customer base. He also established subsidiaries in rural housing finance, insurance broking, and asset management while forging international joint ventures.

E-Voting Process and Timeline

The bank has engaged National Securities Depository Limited (NSDL) to provide remote e-voting facilities for all eligible members. The voting process is restricted exclusively to electronic voting, with no physical postal ballot forms being distributed.

Members holding equity shares as of the cut-off date of March 20, 2026, are eligible to participate in the e-voting process. The bank has appointed Mr. Alwyn D'Souza (Membership No. FCS 5559) as Scrutiniser and Mr. Vijay Sonone (Membership No. FCS 7301) as Alternate Scrutiniser to ensure a fair and transparent voting process.

Current Roles and Qualifications

Mr. Iyer currently serves as a member of the bank's Audit Committee, Corporate Social Responsibility and Environmental, Social and Governance Committee, and Customer Service Committee. He holds a Bachelor of Commerce degree and a Doctor of Letters (D.Litt.) degree.

The director currently serves on boards of several listed and unlisted companies, including:

• Mahindra Susten Private Limited (Non-Executive Director - Chairman)
• Mahindra First Choice Wheels Limited (Non-Executive Director - Chairman)
• Kotak Mahindra Prime Limited (Non-Executive Independent Director)
• TVS Capital Funds Private Limited (Non-Executive Independent Director)
• NOCIL Limited (Non-Executive Independent Director)
• Sai Life Sciences Limited (Non-Executive Independent Director)

Regulatory Compliance

The appointment follows regulatory requirements under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandate shareholder approval for independent director appointments within three months of the appointment date. The resolution requires approval as a Special Resolution through the postal ballot process.

Mr. Iyer holds 3,756 equity shares of face value Re. 1 each in the bank and has attended 1 out of 1 Board meeting since his appointment. As an Independent Director, he will be entitled to sitting fees and expenses for attending Board and Committee meetings, along with compensation as permitted under applicable regulations.