Banker Uday Kotak has resigned as managing director (MD) and chief executive officer (CEO) of Kotak Mahindra Bank, effective September 1, 2023.
The bank's board met on Saturday to consider Uday Kotak's resignation. Kotak has become a non-executive director of the bank.
In a letter to Prakash Apte, chairman of the Board of Directors, Kotak said he has resigned "with immediate effect" though he still has a few months to go.
In the meantime, Dipak Gupta, the current joint managing director, will function as MD and CEO, subject to approvals.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
Here is the full text of Uday Kotak's letter of resignation:
It has been 38 long years since this institution was created, with 3 employees in Fort, Mumbai, it is now a pre-eminent Bank and financial conglomerate, having presence across India and in 5 other countries, with over 100,000 employees. I have cherished being a of this entire journey. It is now time to move on.
Although, I still have a few months to go, my resignation as Managing Director & CEO of the Bank with immediate effect.
I have mulled over this decision for some time and believe this is the right thing for the institution.
On December 31, 2023, the terms of yourself as Chairman, myself as Managing Director, and Mr Dipak Gupta, Joint Managing Director, expire.
With a view to sequencing this process from a transition and stability perspective, I have decided to take this action after completion of the financial year and the AGM for FY 2023. The Bank has taken necessary steps on succession and we await the RBI's decision. The bank's senior management team with years of experience is well placed to carry on this legacy.
Over the next few months, I am going to be significantly occupied with some personal and family commitments. My elder son's marriage functions are being planned.
Consequently, considering the proximity of these events to the end of my tenure, I thought it appropriate I to hand over the baton and stagger the transition.
In the recent past, we have taken various measures to fortify our institution and make it future ready. These include steps taken to ensure it's financial stability and strengthen the risk matrix. We have added talent in the areas of technology, customer experience, marketing and risk analytics. This further strengthens our outstanding leadership team.
I stand in a lonely place of being a founder, promoter and significant shareholder of this great institution. It also bears our family name and carries that as its brand. The institution that we have together built stands for purpose, trust and integrity. I am committed as a stakeholder to see this institution sustain and grow.
In these changing times, I envision an India leading the world in the years ahead. I am confident that this majorly Indian owned institution will play an important role in India's destiny. As new leaders take over, I look forward to my new role as a non-executive director, a role entrusted to one by the Board and an overwhelming majority of the shareholders the Bank.
I am grateful for the support, guidance and dedication of our employees, colleagues, stakeholders, regulators, directors, and my friends, family and all others who have helped me in living my dream.
I would request you to take necessary steps as may be required , in view of my decision.
With best regards,
Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd