Kotak Mahindra Bank has reported the second bad news in barely a week’s time. Soon after the Reserve Bank of India (RBI) put business restrictions on the private lender, KVS Manian has stepped down as the joint managing of the Uday Kotak-founded bank with immediate effect.

The re-designation of Manian as the joint MD on 1 March did not stop him from making his next career move. He is likely to join Federal Bank even as the tenure of the Kerala-based lender’s managing director and CEO Shyam Srinivasan comes to an end in the third week of September.

In his resignation letter, Manian said that he was tendering his resignation from Kotak Mahindra Bank's services to pursue other opportunities in the financial services sector that he is currently exploring. Additionally, he mentioned that he would also be stepping down from the board of the bank.

Manian, an alumnus of the Indian Institute of Technology (BHU)-Varanasi and Jamnalal Bajaj Institute of Management Studies, Mumbai, had been with the Kotak Group for almost three decades. He played a key role in the bank's growth.

Announced a new reporting structure, the bank said the wholesale, commercial and private bank businesses will now report directly to managing director and chief executive Ashok Vaswani. The asset reconstruction division will report to deputy managing director Shanti Ekambaram, who will also oversee the investment banking and institutional equities businesses.

“Manian has spent over 29 years at Kotak and we are thankful to him for his association and we wish him well in his future endeavours. We are confident of the strong leadership talent at Kotak and our ability to scale our businesses to the next level in times to come," said Vaswani.

Last year, Vaswani took over as the CEO of the bank from Uday Kotak, for a period of three years from 1 January.

Manian’s exit comes at a time when the RBI on 24 April barred Kotak Mahindra Bank from digital sourcing of customers and issuance of fresh credit cards, due to “serious deficiencies” in its IT infrastructure.