Uday Kotak resigned as the managing director and chief executive officer of Kotak Mahindra Bank, the bank said in a stock exchange filing on Saturday, Sept. 2, 2023.
Credit: PTI Photo
Two whole-time directors KVS Manian and Shanti Ekambaram of Kotak Mahindra Bank are in the race for the post of Managing Director and CEO, the position vacated by Uday Kotak last week.
Kotak stepped down as MD and CEO of the bank effective September 1, 2023, four months ahead of his term was to end.
The RBI will soon decide on Kotak's replacement as the new MD and CEO of Kotak Mahindra Bank, as the new person has to take charge on or before January 1, 2024.
Kotak, whose holding in the bank stands at 26 per cent, has become a non-executive director of the bank.
As an interim arrangement, its Joint Managing Director Dipak Gupta will carry out the duties of the Managing Director and CEO until December 31, 2023, subject to the approval of the Reserve Bank of India and the members of the bank, the lender had said in a regulatory filing on Saturday.
Taking to microblogging site X, formerly Twitter, Kotak had said, "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 bank awaits the RBI approval of the proposed successor, who would take charge from January 1, 2024, Kotak, who has been MD and CEO of the bank since its inception, had said.
"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," he said.
A long time ago, he said, "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 sq ft office in Fort, Mumbai. I have deeply cherished every bit of this memorable journey, living my dream".
Kotak Mahindra Bank is now a pre-eminent bank and financial institution, created on the basic tenets of trust and transparency, he said.
"We have created value for our stakeholders and provide over 1 lakh direct jobs. An investment of Rs 10,000 with us in 1985 would be worth around Rs 300 crore 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," he said.
Kotak Mahindra Bank is among the few large private sector banks to have prominent promoter shareholders.