New Delhi: Uday Kotak, the founder of Kotak Mahindra Bank, has surprised the financial world by resigning as the CEO and MD months before his expected tenure ends.
Mr Kotak, in a letter addressed to Prakash Apte, chairman of the Board of Directors, said he has resigned "with immediate effect".
Now, Anand Mahindra, Chairman of the Mahindra Group, has expressed his thoughts on Mr Kotak's departure. On the platform formerly known as Twitter (now X), Mr Mahindra spoke about his first encounter with Mr Kotak.
He recalled, “I remember the first time I met Uday when he walked into my Office at Mahindra Ugine Steel almost 4 decades ago and offered me a bill-discounting faculty. The alloy steel industry was in a trough at that time and I asked him why he was taking the risk. He replied: ‘I've studied both the company and the management & concluded my money will be safe.' He was only in his early twenties but I clearly saw the signs of a very special mind. I vividly recall telling him that if he ever needed outside capital to come back to me, & to my great good fortune, he did! The rest, as they say, is history.”
Extending his best wishes to Mr Kotak, Mr Mahindra said, “But there is no finish line to ‘His-story.' Uday's simply starting a new chapter of impact on the Indian Financial services Industry. Here's to more adventures, my friend!”
On Saturday, at the time of announcing his resignation, Mr Kotak tweeted, “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 a smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO. The bank awaits RBI approval of the proposed successor. In the interim my dear colleague Dipak Gupta - currently Joint MD, will function as MD & CEO, subject to approvals. As Founder, I am deeply attached to the 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.”
Reflecting on his remarkable 38-year journey, Mr Kotak shared, “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.”
Mr Kotak was associated with the bank for 38 years.