Kotak Mahindra Bank looking to replace Uday Kotak as CEO, taps search firm; here’s why he will step down

Uday Kotak has been at the helm of Kotak Mahindra Bank since it was founded in 1985 but has to resign as CEO by next year due to RBI norms.

kotak mahindra bank
Uday Kotak will step down from the role of CEO by next year.

Kotak Mahindra Bank has reportedly begun searching for the next CEO to replace long-standing officer and founder Uday Kotak, who is set to step down from the executive role by next year 2024. Kotak Mahindra Bank’s board sought to engage the services of consulting firm Egon Zehnder in an attempt to find the next CEO for India’s third largest private bank, Bloomberg reported citing unidentified sources. Reserve Bank of India caps the tenure of business leaders heading banks; it is due to this reason that Uday Kotak must relinquish his post.

Group presidents and whole-time directors Shanti Ekambaram and KVS Manian are among the top internal candidates for the prominent role. In addition to the internal candidates, Kotak Mahindra Bank board will expand the search for a replacement to candidates from around the globe. Jay Kotak, son of founder Uday Kotak, is not a contender for the role, according to KVS Manian.

Shanti Ekambaram and KVS Manian at Kotak Mahindra Bank

Shanti Ekambaram joined Kotak Mahindra Bank in 1991 and is now its highest-ranking woman. She oversees several functions including online saving accounts business, treasury, public affairs and human resources, the bank’s website shows. She continues to lead its consumer banking. KVS Manian, who joined in 1995, is part of the group management council, heading wholesale banking and wealth management business. He also has oversight responsibility of investment bank and institutional equities businesses, according to Bloomberg.

Uday Kotak at Kotak Mahindra Bank

Uday Kotak has been at the helm of Kotak Mahindra Bank since it was founded; he has a net worth of about $13.4 billion, according to Bloomberg Billionaires Index. The firm started as a non-banking financial institution in 1985 with a capital infusion from industrialist Anand Mahindra of Mahindra Group and transitioned into commercial banking in 2003, boasting of 1,752 branches across India as of the end of 2022. Kotak Bank was the first NBFC to receive a banking license from the RBI in India.

The Kotak Mahindra Group’s business model is concentrated in India, where it offers a slew of various financial services which are delivered by 19 entities. While focused on their domestic customers, Kotak also established a firm presence across the globe, especially in key financial markets. In Q3FY23, Kotak Mahindra Bank’s net income soared by 31% to $337 million, backed by India’s strong credit demand. As the Indian economy expands, Kotak Mahindra Bank is scheduling ambitious plans that will help it adjust and grow to the ever-evolving demand landscape.

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First published on: 21-02-2023 at 12:31 IST
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