Uday Kotak has resigned from his post as the managing director and chief executive officer of the Kotak Mahindra Bank, effective from September 1. The bank’s CEO announced his resignation on social media via a post on X on Saturday.
The company informed the market via exchange filing that Kotak will now function as a non-executive director of the bank, while Dipak Gupta, the lender’s joint managing director will take on the role on an interim basis.
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 smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO.…
— Uday Kotak (@udaykotak) September 2, 2023
Dipak Gupta will lead the bank as the managing director and CEO until December 31, 2023, subject to necessary approvals by the Reserve Bank of India and the members of the bank.
Uday Kotak in his post said, “As Founder, I am deeply attached to 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.”
Talking about the growth of the bank, Kotak added, “We are now a pre-eminent bank & 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 cr today.”
My letter is attached pic.twitter.com/vcSIEcvy2r
— Uday Kotak (@udaykotak) September 2, 2023
The news comes after the bank recently denied any suggestions that the banking authority was pushing for an external candidate to succeed Kotak as the head of the bank. The Reserve Bank of India noted in 2021 that the outgoing head of a bank should take a three-year cooling-off period.
The lender’s founder penned in his letter, “I stand in a lonely place of being a founder, promoter and significant shareholder of this great institution.”
Also Read : India Contemplating Imposing Anti-Dumping Duty On Chinese Glass Imports