Uday Kotak steps down as MD & CEO of Kotak Mahindra Bank

Sandeep Dikshit

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New Delhi, September 2

Uday Kotak, a doyen of the private banking industry, on Saturday quit as CEO and MD of Kotak Mahindra Bank and, in a hand-written three-page letter to company Chairman Prakash Apte, named the Joint Managing Director Dipak Gupta as his successor till a regular replacement is appointed on January 1. 2024.

The 64-year-old Kotak’s resignation took the financial world by surprise and initially, speculation mounted whether it was a hostile takeover or tax troubles with the government hastened his decision to quit. Kotak, along with Apte and Gupta, is due to retire at the year-end.

As Kotak explained in his letter to Apte, over the next few months he would be significantly occupied with personal and family commitments. As his elder son’s marriage functions are being planned around the closing months of his tenure, he thought it prudent to pass on the baton now that the formalities relating to the previous fiscal year such as the AGM have been completed.

He will remain a non-executive director for the next five years, while three insiders, including Gupta, are running for his post.

A man who founded Kotak Mahindra Finance with just three employees 38 years back in a 300 sq feet office in Mumbai and turned it into an institution with market cap of Rs 3.66 lakh-crore, Kotak said an investment of Rs 10,000 when he started out in 1985 would be worth around Rs 300 cr today.

To a wider audience, he explained on “X”, formerly Twitter, “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.’’

Kotak was also nostalgic in his resignation letter to Apte. “I stand in a lonely place of being the founder, promoter and largest shareholder. The Bank also carries our family name and carries that as its brand. The institution we have built stands for purpose, trust and integrity. I am committed as a shareholder to see this institution grow,’’ he wrote.