Uday Kotak has resigned as managing director (MD) and chief executive officer (CEO) of Kotak Mahindra Bank, with effect from September 1, 2023. Kotak's resignation comes four months ahead of schedule, and he has cited “personal family commitments” as the reason for the same.
In his resignation letter to Prakash Apte, chairman, board of directors, Kotak Mahindra Bank, Kotak says he mulled over the decision of resignation for some time and believes this is the right thing for the institution. "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 to hand over the baton and stagger the transition," says Kotak.
With his resignation, Kotak has become a non-executive director of the bank. Kotak’s new term will be for five years, not liable to retire by rotation.
Kotak Mahindra Bank, in an exchange filing, says as an interim arrangement, 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. Gupta has been a full-time director of the bank since January 1999 and has been designated as the joint MD since January 1, 2012.
A prominent businessman in the country, Uday Kotak is the founder and promoter of Kotak Bank and has been the managing director & CEO since August 1, 2002. "He has played an important role in the institution’s growth over the past 38 years. Under Mr. Kotak’s leadership, Kotak Mahindra group established a prominent presence in every area of financial services from stock broking, investment banking, car finance, life insurance and mutual funds," says a bank statement.
Kotak 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.
Kotak leads 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 the Monetary Authority of Singapore, the International Advisory Board of the Government of Singapore Investment Corporation, and the Investment Advisory Committee of India’s Army Group Insurance Fund.
From October 1, 2018, to April 2, 2022, Uday Kotak also 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.
On the other hand, Dipak Gupta, who is a graduate in electronics engineering from IIT-Varanasi and a post-graduate in management from the Indian Institute of Management, Ahmedabad (IIMA), has over three decades of experience in the financial services sector, nearly two and half decades of which had been with the Kotak Group. "Gupta has played a key role in building various businesses for Kotak Mahindra Group. He was instrumental in forging the partnership between Kotak Mahindra Finance Ltd (“KMFL”) and Ford Credit International."
Gupta was also responsible for setting up the retail business following the conversion of KMFL into a bank and was responsible for leading the Kotak Group’s initiatives into the banking arena, says the bank.