NEW DELHI: Uday Kotak announced on Saturday that he has stepped down as the managing-director and CEO of Kotak Mahindra Bank effective September 1. He will continue to serve as a non-executive director.
As an interim arrangement, Dipak Gupta, the joint managing director, will carry out the duties of the MD and CEO until December 31, 2023.
Uday Kotak’s tenure as the chief executive officer and managing director of the bank was to end on December 31, 2023.
‘Keen to ensure smooth transition’
In a post on social media, Kotak said: “Succession at Kotak Mahindra Bank has been foremost on my mind, since our chairman, myself and the 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.”
“In the interim, my dear colleague Dipak Gupta – currently Joint MD, will function as MD & CEO, subject to approvals,” he added.
“As Founder, I am deeply attached to brand Kotak and will continue to serve the institution as a Non-Executive Director and significant shareholder,” Kotak said.
“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 three employees in a 300 sqft office in Fort, Mumbai. I have deeply cherished every bit of this memorable journey, living my dream. We are now a pre-eminent bank and financial institution, created on the basic tenets of trust and transparency. We have created value for our stakeholders and provide over 1 lakh direct jobs. An investment of ₹10,000 with us in 1985 would be worth around ₹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 added.
In February this year, Bloomberg had reported that the bank’s board had engaged a consulting firm to lead a global search for a CEO to replace Kotak.