Uday Kotak has resigned as the managing director and chief executive officer of Kotak Mahindra Bank with effect from September 1, the bank said on Saturday in a regulatory filing. He will, however, continue as a non-executive director of the bank. “Uday Kotak has ceased to be the Managing Director & CEO of the Bank, with effect from September 1, 2023 on account of his resignation considered at the Bank’s Board Meeting held today and has become a Non-Executive Director of the Bank,” it said. His term as non-executive director of the bank would be for a period of five years, not liable to retire by rotation.
Uday Kotak’s tenure as the chief executive officer and managing director of the bank was to end on December 31, 2023. Kotak Mahindra Bank, as an interim arrangement, has appointed Dipak Gupta, the Joint Managing Director, to carry out the duties of the managing director and CEO until December 31, 2023, subject to the approval of the Reserve Bank of India and the members of the Bank. The Bank has already made an application to the RBI for the approval of the new managing director & CEO, with effect from January 1, 2024.
A smooth transition
Uday Kotak, in a post on X (formerly, Twitter), said that he has stepped down in order ensure a smooth transition of the leadership roles at the bank. “Succession at Kotak Mahindra Bank has been foremost on my mind, since our Chairman, myself and Joint MD are all required to step down by year end. I am keen to ensure smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO,” he said in the post.
He further added, “As Founder, I am deeply attached to brand Kotak and will continue to serve the institution as Non-Executive Director and significant shareholder. We have an outstanding management team to carry the legacy forward. Founders go away, but the institution flourishes into perpetuity.”
“A long time ago, I saw names like JP Morgan and Goldman Sachs dominate the financial world and dreamed of creating such an institution in India. It is with this dream that I started Kotak Mahindra 38 years ago, with 3 employees in a 300 sqft office in Fort, Mumbai. I have deeply cherished every bit of this memorable journey, living my dream. We are now a pre-eminent bank & financial institution, created on the basic tenets of trust and transparency. We have created value for our stakeholders and provide over 1 lakh direct jobs. An investment of Rs 10,000 with us in 1985 would be worth around Rs 300 cr today. I am confident that this Indian owned institution will continue to play an even more important role in India’s transformation into a social and economic powerhouse,” Uday Kotak said.
Earlier in February, a Bloomberg report had said that the Kotak Mahindra Bank’s board has engaged consulting firm Egon Zehnder to lead a global search for a chief executive officer to replace its billionaire founder Uday Kotak. According to the people aware of the matter, the report said, Group presidents and whole-time directors Shanti Ekambaram and KVS Manian are the internal candidates for the top job. The board is expanding the search to ensure it finds suitable external candidates, they had added.