Uday Kotak steps down as Kotak Mahindra Bank MD-CEO
What's the story
Uday Kotak, the managing director and CEO of Kotak Mahindra Bank, resigned from his position with effect from Friday (September 1), the bank announced on Saturday.
However, Kotak will remain a non-executive director of the bank. His tenure as the MD-CEO was to conclude on December 31, 2023.
As an interim measure, Dipak Gupta, the bank's joint managing director, will assume Kotak's duties until December 31, 2023, subject to approval from the Reserve Bank of India and bank's members.
Details
Kotak's legacy and succession planning
Kotak has led Kotak Mahindra Bank since its inception in 1985 as a non-banking financial institution and its transformation into a commercial lender in 2003.
According to the Bloomberg Billionaires Index, his net worth is around $13.4 billion.
Moreover, the bank's board hired consulting firm Egon Zehnder to undertake a global hunt for a CEO to replace Kotak, Bloomberg reported in February.
On Saturday, he stated on social media that he was stepping down to facilitate the bank's succession plan.
Insights
Continued involvement and shareholding
In his message, Kotak also expressed his deep attachment to the Kotak Mahindra brand and his commitment to serving the institution as a non-executive director and important shareholder.
On social media, he wrote, "We have an outstanding management team to carry the legacy forward. Founders go away, but the institution flourishes into perpetuity."
Notably, as of March 31, 2023, Kotak and his related entities held 25.95% of the bank's equity share capital and 17.26% of its paid-up share capital.