Uday Kotak, managing director and chief executive officer (MD & CEO) of Kotak Mahindra Bank, said in the bank’s annual report for 2022-23 that he saw himself as a non-executive board member and a strategic shareholder going forward.
Kotak’s current term as MD & CEO of Kotak Mahindra Bank ends on December 31, 2023.
“Going forward, I see my role as a non-executive board governance member and a strategic shareholder with a long-term perspective of nurturing a world class institution,” he said while addressing the shareholders in the bank’s annual report.
On April 21, 2023, the bank informed the exchanges about the resolution regarding the appointment of Kotak as non-executive, non-independent director of the bank upon his ceasing the post of MD & CEO.
In April 2021, the Reserve Bank of India (RBI) decided to cap the tenure of MD & CEO of a bank — who is also a promoter or a majority shareholder — at 12 years, which could be extended by 3 years under extraordinary circumstances.
“It is unusual in today’s world of banking anywhere to have an individual with approximately 26 per cent skin in the game with disproportionate family assets in one stock, emotionally attached to living his dream of making India proud,” Kotak said.
RBI norms allow promoters to have a maximum 26 per cent stake in a bank. Kotak has been heading the bank since its inception in 2004. He said the bank, which is a product of India’s growth story and financial sector evolution, was at the right place at the right time.
“We have created value for stakeholders and now provide approximately 100,000 direct jobs and a multiple of that in indirect jobs. An investor who invested Rs 10,000 with us in 1985 would be worth Rs 300 crore today. Most importantly, we have built an institution on the basic tenets of trust and transparency,” he said.
He said that in the last one year alone, the bank has hired a new chief technology officer, a chief of Customer Experience, a head of Brand, Product and Marketing, and a chief of Retail and Commercial Risk to drive potentially transformative changes in each of these areas.
“At the same time we will grow internal talent, which is future ready,” he said.
Kotak said that both India’s macro and micro picture is in good shape.
“At this stage, a virtuous cycle for India is on the cards. Our financial sector is in its Goldilocks period. Clock striking midnight seems far away for Cinderella,” he said, adding that the Indian financial sector needs significant capacity building for this aspiration.
Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd