On Saturday, September 2, Uday Kotak announced that he has stepped down as Kotak Mahindra Bank’s managing director and CEO effective from September 1, 2023. Uday Kotak’s resignation comes four months prior to the end of his tenure, that is December 31st 2023.
The bank stated in an exchange filing that Kotak’s departure was discussed at the board meeting on Saturday. He has been appointed as a non-executive director of the bank.
As an interim measure, Dipak Gupta, the joint managing director, will assume the roles of MD and CEO until December 31, after obtaining the approval of the RBI and the bank’s members.
Taking to X (formerly Twitter), Uday Kotak informed that he is stepping down to “ensure a smooth transition” saying that succession at the Kotak Mahindra Bank has been foremost in his mind.
“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,” Kotak said.
“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 the 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,” Kotak further added.
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.…
— Uday Kotak (@udaykotak) September 2, 2023
He further reflected on the journey of starting Kotak Mahindra Bank 38 years ago with 3 employees in a 300 sqft office in Mumbai.
“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,” Uday Kotak added.
Moreover, he outlined that Kotak Mahindra Bank has created value for its stakeholders and provides over 1 lakh direct jobs. An investment of ₹10,000 with us in 1985 would be worth around ₹ 300 crores at present.
Concluding his long post, Uday Kotak expressed confidence that his “Indian-owned institution will continue to play an even more important role in India’s transformation into a social and economic powerhouse.”
In his letter addressed to Prakash Apte, Chairman of the Board of Directors, Uday Kotak, stated that he has mulled over the decision of resigning from the position of the Bank’s CEO and MD adding that this is the right time to do so even though there are a few months left for his tenure to end. Kotak further mentioned he intends to spend time fulfilling his personal commitments and be with his family.
My letter is attached pic.twitter.com/vcSIEcvy2r
— Uday Kotak (@udaykotak) September 2, 2023
“Over the next few months, I am going to be significantly occupied with some personal and family commitments. My elder son’s marriage functions are being planned. Consequently, considering the proximity of these events to the end of my tenure, I thought it appropriate to hand over the baton and stagger the transition,” Kotak wrote.
