Uday Kotak, who established Kotak Mahindra Finance in 1985 and saw it grow into Kotak Bank with a market worth of Rs 3.5 lakh crore, has resigned as MD and CEO. Kotak attempted to explain why leaving four months before the end of his term in December 2023 should not come as a surprise in an interview with TOI’s Mayur Shetty.
He wanted to act morally towards the organisation. The chairman, managing director, and joint managing director were scheduled to leave on December 31. We believed that a staged approach would be appropriate for the stability of the institution during this period of transition.
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Uday Kotak’s Final Comments in the Interview:
I wanted to depart after completing my duties, which included the August 19 AGM approval of the FY23 financial accounts. I also have obligations to my family and friends. The nuptials of my son are in November. It was right to pass the torch now given that these events had place just before my term was up. There is no other surprise; this is the cause. Last but not least, the institution is more significant than any one person.
For both the chairman and MD roles, the Kotak bank has previously submitted a succession application to the RBI. In anticipation of RBI approval, the board has selected Dipak Gupta as CEO for a four-month period, and I have changed my title from MD to non-executive director. This development should not be shocking as market investors were already informed that I would be stepping down in December. The institution will continue to advance because we have planned the transition in a way that removes one uncertainty. I continue to be dedicated to investors and the markets as a non-executive director and sizable shareholder. I have been given the position of non-executive director and will remain involved with it.
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