The issue here is governance and that the bank’s board of directors did not have formal oversight despite RBI suggesting to banks to have an IT Strategy Committee in its April 2011 circular, according to Hemindra Hazari, SEBI registered independent analyst.
“When smaller banks and even NBFCs had IT Strategy Committees prior to FY2023, why did the Kotak Bank board ignore setting up of such a committee in FY2022 and FY2023” he said.
The absence of an IT Strategy Committee meant that the board was totally dependant on the executive regarding IT, Hazari said.
