Uday Kotak steps down as Kotak Mahindra Bank MD and CEO
Uday Kotak has resigned from the position of Kotak Mahindra Bank managing director and chief executive officer with effect from September 1, 2023. The bank announced in a statement to exchanges on September 2. However, Kotak will carry forward his responsibilities as a non-executive director of the bank. Uday Kotak’s term as the chief executive officer and managing director of the bank finishes on December 31, 2023.
As a temporary performance, Dipak Gupta, the joint managing director, will serve the bank by performing the duties of the MD and CEO until December 31. This is subject to the consent of the RBI and the members of the bank.
Kotak, in a message on social media on September 2, said he is resigning from the bank to allow the succession plan 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 a smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO”, said Kotak. Additionally, the bank is also waiting to get consent from the RBI with regard to the planned successor, said Kotak.
In February 2023, Bloomberg reported that the board has employed consulting firm Egon Zehnder to conduct an international search for a chief executive officer to replace its billionaire founder Kotak.
Since 1985 when the bank was founded as a non-banking financial institution, Kotak has been the leader. Kotak Mahindra Bank became a commercial bank only in 2003. Uday Kotak has a net worth of approximately $13.4 billion, as per the Bloomberg Billionaires Index.
Kotak along with relatives and companies in which he has valuable interest maintains 25.95 percent of the equity share capital of the bank and 17.26 percent of the paid-up share capital of Kotak Mahindra Bank Limited as of March 31, 2023.
In his social media message, Kotak added that as a founder, he has been deeply associated with the brand Kotak and will continue his term as Non-Executive Director and noteworthy shareholder of the institution. “We have an outstanding management team to carry the legacy forward. Founders go away, but the institution flourishes into perpetuity,” Kotak added.
“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,” Kotak added.
Over a period of time, Kotak Mahindra Bank has created value for stakeholders and given over one lakh direct jobs, said Uday Kotak. An investment of Rs 10,000 in the bank in 1985 would be worth around Rs 300 crore today, added Uday Kotak.
Dipak Gupta is presently the second most top executive at Kotak Mahindra Bank after Uday Kotak. Gupta, who dons many roles in the bank including that of head of IT, cyber security, customer experience, and business intelligence, currently works as the joint managing director.
Gupta’s connection with Kotak dates back to 1999 when he joined as an executive director of Kotak Mahindra Finance Ltd (KMFL) and has contributed to developing the retail business of the bank even before Kotak got the banking license in 2003.