Uday Kotak Profile: Kotak Mahindra Bank (Kotak Mahindra Bank) founder and promoter Uday Kotak (Uday Kotak) the Managing Director of the Bank (MD) and Chief Executive Officer (CEO) resigned from the post. The bank gave this information to the stock market. Kotak tendered his resignation three months before the deadline set by the Reserve Bank. He holds 26 percent stake in the bank. Kotak Mahindra Bank also said that Joint Managing Director Deepak Gupta will hold the responsibility of Chief Executive Officer till December 31. According to the information given to the stock market, the resignation of Uday Kotak was considered in the board meeting of the bank held today and he will no longer be the managing director and CEO of the bank with effect from September 1, 2023. He has now become the non-executive director of the bank. According to the regulatory order, the tenure of the Managing Director and Chief Executive Officer was limited to 15 years. After this, the bank’s board had earlier this year decided to appoint Uday Kotak as non-executive director after his current tenure ends in December.
Voluntarily resigning as CEO: Uday Kotak
Uday Kotak wrote on X that the issue of succession in Kotak Mahindra Bank is the most important for me, because our chairman, me and the joint MD all have to step down by the end of the year. I want to start this farewell in order to ensure a smooth transition. I am now starting this process and voluntarily resign from the post of CEO. Kotak said the bank is awaiting RBI approval for the proposed successor, who will take over from January 1, 2024. He further added that he is deeply involved with brand Kotak as a founder and will continue to serve the organization as a non-executive director and significant shareholder. Kotak said that we have an excellent management team to carry forward the legacy. The founders go away, but the institution continues to flourish forever.
Started the bank with three employees
Uday Kotak, former CEO of Kotak Mahindra, started Kotak Mahindra with three employees 38 years ago, which is today a reputed bank and financial institution. He said that we have created value for our stakeholders and created more than one lakh direct jobs. An investment of Rs 10,000 with us in 1985 would be worth around Rs 300 crore today. I am confident that this Indian-owned institution will continue to play its role in making India a social and economic superpower. Kotak, in a handwritten message to bank chairman Prakash Apte, said the time has come to move on and the decision to resign three months before the end of his tenure has been taken to complete the process in an orderly manner. . Apte’s term is also ending on 31 December 2023.
Who is Uday Kotak
Uday Kotak is an Indian businessman and the chairman of Kotak Mahindra Bank and a recognized financial entrepreneur. He is famous as a prosperous businessman and prominent leader of the banking sector. Uday Kotak was born on 15 March 1959, in Jamnagar city of Gujarat. He obtained his bachelor’s degree in Mumbai and then started a career in the financial sector after becoming a Chartered Accountant (CA). Uday Kotak founded Kotak Mahindra Bank in 2003, which he still serves as chairman. Kotak Mahindra Bank holds an important position in the Indian financial market and is a leading private bank providing various financial services. Uday Kotak has received several awards for his contributions to the financial sector, and is considered an important member of the Indian business community.
Kotak Mahindra wanted to become a cricketer
Uday Mahindra Growing up in Mumbai in the 1970s, Uday Kotak wanted to be a cricketer. He took training from the great coach Ramakant Achrekar. However, due to an injury in the field, he had to turn to finance. He started a finance firm named Kotak Capital Management Finance Limited in 1985. He converted it into a bank in 2003. Uday started his finance and bill discounting business with seed capital borrowed from family and friends. A major part of the investment was given by his best friend Anand Mahindra, hence the bank was named Kotak Mahindra. At the age of 23, Uday Kotak started Kotak Capital Management Finance Limited, a financial consulting company, which later became Kotak Mahindra Finance Limited.
First NBFC got bank status in the country
Kotak Mahindra has been continuously moving towards heights since its inception. As a result, on 22 March 2003, Kotak Mahindra Finance Limited got a banking license from the Reserve Bank of India. This was the first time in India’s corporate banking history that an NBFC was granted a banking license by the RBI to a non-banking finance company. In 2014, Kotak transformed its small bill-discounting business into a financial services group and became the second largest scheduled commercial bank in India by market capitalization with over 1270 branches.
Uday Kotak was about to retire in December
According to the rules of the Reserve Bank of India, the maximum term of the Managing Director and Chief Executive Officer has been fixed at 15 years. Due to this Uday Kotak had to retire in December. However, he resigned from his post three months back. Following the resignation, Uday Kotak announced that he would serve as a non-executive director on the bank’s board. It is understood that the net worth of the company is also likely to increase this year. According to the Bloomberg Billionaires Index, Kotak’s own net worth is around $14.5 billion, most of which comes from his 26% stake in the bank.
Studied at Jamnalal Bajaj Institute of Management Studies
Uday Kotak, who grew up in Mumbai, also got his education from there. He holds a bachelor’s degree in commerce and an MMS degree from Jamnalal Bajaj Institute of Management Studies. At present he has more than 35 years of experience in the banking and financial sector. Uday Kotak is married to Pallavi Kotak. They have two children and they live in Mumbai.