MUMBAI: In a surprise move, veteran banker Uday Kotak on Saturday resigned as the managing director and chief executive of Kotak Mahindra Bank, four months ahead of his term, which was due to end in December. Kotak, whose holding in the bank stands at 26%, has become a non-executive director of the bank.
As an interim arrangement, Dipak Gupta, the joint managing director, will carry out the duties of MD and CEO until December 31, subject to the approval of the Reserve Bank of India (RBI) and the members of
the bank.
“Uday Kotak has ceased to be the Managing Director & CEO of the Bank, with effect from September 1, 2023 on account of his resignation considered at the Bank’s Board Meeting held today and has become a Non-Executive Director of the Bank,” said the bank in a statement.
As per the regulatory mandate restricting a managing director and chief executive’s term to 15 years, the board of the bank had earlier this year decided to appoint Uday Kotak as the non-executive director after his current term ends in December.
Kotak, in a handwritten message to the bank’s Chairman Prakash Apte attached on X, said it is now time to move on and the decision to resign three months ahead of the expiry of his term is with the view to sequencing this process from a transition and stability perspective.
“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.”
The veteran banker, who has a net worth of about $13.4 billion, launched Kotak Mahindra Finance with three people and a 300-square-foot office in 1985. It was the first non-banking finance company in India to convert into a bank after it received a banking license from the RBI in February 2003.