In a significant development, Uday Kotak, the Founder and Promoter of Kotak Mahindra Bank, has officially stepped down from his role as Managing Director and CEO, effective September 1, 2023. This decision was announced following a recent board meeting held at the bank.
In a letter addressed to Prakash Apte, Chairman of the Board of Directors, Kotak expressed his intention to resign "with immediate effect," even though his term was set to continue for a few more months. He cited the impending need for succession planning as a key reason for his early departure.
"Succession at Kotak Mahindra Bank has been foremost on my mind, since our Chairman, myself, and the 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," Kotak stated in his letter.
As an interim arrangement, Dipak Gupta, the Joint Managing Director, will assume the responsibilities of Managing Director & CEO until December 31, 2023. However, this appointment is subject to approval from the Reserve Bank of India and the bank's members.
Additionally, Kotak Mahindra Bank has already submitted an application to the RBI seeking approval for the appointment of a new Managing Director & CEO, effective January 1, 2024.
Uday Kotak, who has been at the helm of Kotak Mahindra Bank since August 1, 2002, played a pivotal role in the institution's growth over the past 38 years. Under his visionary leadership, the Kotak Mahindra Group expanded its presence across various financial services sectors, including stock broking, investment banking, car finance, life insurance, and mutual funds.
Here's the full text of his resignation letter:
"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. The bank awaits RBI approval of the proposed successor. In the interim my dear colleague Dipak Gupta - currently Joint MD, will function as MD & CEO, subject to approvals.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 ₹10,000 with us in 1985 would be worth around ₹ 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."
While stepping down from his executive role, Kotak will continue to serve as a non-executive Director of the bank, maintaining a connection with the organization he helped build into a financial powerhouse.
This transition marks a significant moment in the history of Kotak Mahindra Bank and sets the stage for new leadership to guide the institution into the future.
