Uday Kotak resigns as MD and CEO of Kotak Mahindra Bank; Dipak Gupta takes interim charge

Uday Kotak resigns as MD & CEO of Kotak Mahindra Bank: Uday Kotak has resigned as the Kotak Mahindra Bank's managing director and chief executive officer (CEO) with effect from September 1, the bank informed the exchanges on Saturday, September 2. Citing the "reason for change" in its exchange filing, the bank said that "Uday Kotak has ceased to be the Managing Director & CEO on account of his resignation and has become a Non-Executive Director of the Bank."

Date of appointment and cessation, and terms of appointment

In its exchange filing, the bank stated that Uday Kotak has ceased to be the Managing Director & CEO of the Bank, with effect from September 1, 2023 on account of his resignation considered at the Bank’s Board Meeting held on Saturday. And he has become a Non-Executive Director of the bank.

Regarding his tenure as a Non-Executive Director of the bank, it stated that his appointment would be for a period of five years, and he would not be "liable to retire by rotation."

Kotak Mahindra Bank's Exchange Filing 

In an exchange filing, the bank said: "Mr Uday Kotak has ceased to be the Managing Director & CEO of the Bank, with effect from September 1, 2023 on account of his resignation considered at the Bank’s Board Meeting held today and has become a Non-Executive Director of the Bank; and (b) as an interim arrangement, Mr. Dipak Gupta, the Joint Managing Director, will carry out the duties of the Managing Director & CEO until December 31, 2023, subject to the approval of the Reserve Bank of India and the members of the Bank. 

And the bank further informed that it has made the application to the Reserve Bank of India  (“RBI”) for the approval of the new Managing Director & CEO, with effect from January 1, 2024.

Uday Kotak pens long note on Twitter

In a long post on X (formerly known as Twitter), Kotak stated that succession at Kotak Mahindra Bank has been foremost on his mind, and since the bank's chairman and Joint MD were all required to step down by the end 2023, he was keen to ensure smooth transition by "sequencing these departures". He stated, "I initiate this process now and step down voluntarily as CEO."

As the bank awaits RBI approval of the proposed successor, Kotak said that in the interim, Dipak Gupta — the current Joint MD, will function as MD & CEO, subject to approvals.

He stated: "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. 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 1 lakh direct jobs. An investment of ₹10,000 with us in 1985 would be worth around ₹ 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."

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

Who is Uday Kotak?

Uday Kotak is the founder and promoter of Kotak Mahindra Bank. He has been the Managing Director & CEO of Kotak Mahindra Bank Limited (earlier known as Kotak Mahindra Finance Limited) since August 1, 2002. During his 38-year-long stint, Kotak Mahindra group became a prominent name in every area of financial services from stock broking, investment banking, car finance, life insurance and mutual funds.

He also lead several key bodies and is currently co-chairman of the Indo-UK Financial Partnership (IUKFP) and chairman of the Advisory Committee on Corporate Insolvency and Liquidation (Insolvency & Bankruptcy Board of India). He is also on the International Advisory Panel of Monetary Authority of Singapore, the International Advisory Board of the Government of Singapore Investment Corporation, the Investment Advisory Committee of India’s Army Group Insurance Fund.

From October 1, 2018 to April 2, 2022, Uday Kotak served as Non-Executive Chairman of the IL&FS Board as constituted by the Government of India to steer the NBFC out of a deep crisis. 

He holds a Bachelor’s degree in Commerce from Mumbai University and a Master’s in Management Studies degree from Jamnalal Bajaj Institute of Management Studies, Mumbai.