INDIA: Billionaire Uday Kotak, the founder and leader of Kotak Mahindra Bank (KTKM.NS), had stepped down from his role as managing director and chief executive four months before his term was originally scheduled to conclude, the bank stated in a stock exchange filing on Saturday.
Kotak Mahindra Bank ranks as the fourth-largest private sector bank in India by assets.The bank also stated that Dipak Gupta, presently serving as the joint managing director, will assume the responsibilities of chief executive until December 31.
In a letter to India’s exchanges, Kotak stated, “I have mulled over this decision for some time and believe it is the right thing for the institution.”
“I thought it appropriate to hand over the baton and stagger the transition,” the letter further reads.
India’s banking regulations restrict chief executives of lenders to a maximum of 12 years in office, provided they are also significant stakeholders.
Kotak’s term was scheduled to conclude in December. The bank has submitted an application for the position of the new managing director to India’s central bank, as stated in its exchange notification.
In India, the Reserve Bank of India, which oversees banks, must approve top positions at financial institutions.
On social media platform X, previously known as Twitter, Kotak wrote, “Founders go away, but the institution flourishes into perpetuity.”
He stated he will continue to serve as a major shareholder and non-executive director on the bank’s board.
Anand Dama, a banking analyst at Emkay Global Financial Services, noted that although the CEO’s sudden departure was unexpected, the bank’s application for approval of his successor hinted at the presence of an internal candidate already in consideration.