The founder of Kotak Mahindra Bank Uday Kotak has stepped down as the Managing Director (MD) and CEO with effect from September 1, 2023. The resignation comes four months ahead of the end of his current tenure, which is December 31, 2023.
The bank, in a filing to exchanges, said Kotak’s resignation was considered at the board meeting held on Saturday. He has become a non-executive director of the bank.
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
In a letter to Prakash Apte, Chairman of the Board of Directors, Kotak wrote, “I have mulled over this decision for some time and believe this is the right thing for the institution. Although, I still have a few months to go, I tender my resignation as Managing Director & CEO of the bank with immediate effect.”
“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,” Kotak added.
“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,” Kotak wrote on Twitter.
As an interim arrangement, the bank said, Dipak Gupta, the Joint Managing Director, will carry out the duties of the MD & CEO until December 31, 2023, subject to approval from the Reserve Bank of India (RBI) and the members of the bank.
The bank said it has already made an application to the RBI for the approval of the new MD and CEO, with effect from January 1, 2024. Kotak is the founder and promoter of the bank and has been the MD & CEO of the bank since August 1, 2002.