Uday Kotak has resigned from the position of managing director (MD) & chief executive officer (CEO) of Kotak Mahindra Bank effective September 1, 2023, the bank said in a BSE filing.
The bank's board held a meeting on Saturday and considered his resignation. Uday Kotak has now become a non-executive director of the bank.
In the interim, Dipak Gupta, the joint managing director, will carry out the duties of the MD & CEO until December 31, 2023, subject to the approval of the Reserve Bank of India (RBI) and the members of the Bank.
Uday Kotak is the founder and promoter of the bank and has been the MD & CEO of Kotak Mahindra Bank Limited (earlier known as Kotak Mahindra Finance Limited) since August 1, 2002. He has played an important role in the institution's growth over the past 38 years.
In a note update on X (formerly Twitter), Uday Kotak said, "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. "
"The bank awaits RBI approval of the proposed successor. In the interim, my dear colleague Dipak Gupta - currently Joint MD, will function as MD & CEO, subject to approvals."
"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."
He added, "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 3 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 & financial institution, created on the basic tenets of trust and transparency. We have created value for our stakeholders and provide over 100,000 direct jobs. An investment of Rs 10,000 with us in 1985 would be worth around Rs 300 cr 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."
Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd