Uday Kotak has tendered his resignation as the Managing Director and Chief Executive Officer of Kotak Mahindra Bank, effective from September 1, according to a regulatory filing made by the bank on Saturday. Nevertheless, he will maintain his role as a Non-Executive Director at the bank. The announcement stated, "Uday Kotak has officially relinquished his role as Managing Director & CEO of the Bank, effective from September 1, 2023, due to his resignation, which was considered during the Bank's Board Meeting held today. He has now assumed the position of a Non-Executive Director at the Bank." His term as a non-executive director will span five years and will not be subject to retirement by rotation.
Originally, Uday Kotak's tenure as the bank's CEO and Managing Director was set to conclude on December 31, 2023. In an interim arrangement, Kotak Mahindra Bank has designated Dipak Gupta, the Joint Managing Director, to undertake the responsibilities of Managing Director and CEO until December 31, 2023. This appointment is contingent upon approval from the Reserve Bank of India and the bank's members. The bank has already submitted an application to the RBI for approval of the new Managing Director & CEO, effective from January 1, 2024.
Uday Kotak shared in a post on X (formerly Twitter) that he has made the decision to step down in order to ensure a seamless transition in leadership roles at the bank. He expressed, "Succession planning at Kotak Mahindra Bank has been a top priority for me, given that our Chairman, myself, and the Joint MD are all required to step down by the end of the year. I am committed to facilitating a smooth transition by carefully timing these departures. I am initiating this process now and voluntarily stepping down from the CEO position."
He added further, stating, "As the Founder, my connection to the Kotak brand runs deep, and I will continue to serve the organization in my role as a Non-Executive Director and a significant shareholder. We have a remarkable management team in place to carry on the legacy. Founders may step aside, but the institution thrives in perpetuity."
"Many years ago, I witnessed names like JP Morgan and Goldman Sachs dominating the global financial landscape and envisioned creating a similar institution in India. It was with this aspiration that I established Kotak Mahindra 38 years ago, starting with just three employees in a 300 sqft office in Fort, Mumbai. I have treasured every moment of this remarkable journey, as it allowed me to live my dream. Today, we stand as a leading bank and financial institution, built upon the foundational principles of trust and transparency. We have generated value for our stakeholders and have provided over 100,000 direct jobs. An investment of Rs 10,000 made with us in 1985 would now be valued at around Rs 300 crore. I am confident that this homegrown institution will continue to play an even more significant role in India's evolution into a social and economic powerhouse," remarked Uday Kotak.
In February, a Bloomberg report disclosed that Kotak Mahindra Bank's board had enlisted the consulting firm Egon Zehnder to lead a global search for a new Chief Executive Officer to succeed its billionaire founder, Uday Kotak. According to sources familiar with the situation, the report stated that internal candidates for the top position included Group Presidents and Whole-Time Directors Shanti Ekambaram and KVS Manian. However, the board was extending its search to ensure it identified suitable external candidates, they added.
