'Founders go away, but...': Uday Kotak resigns as Kotak Mahindra Bank MD & CEO, shares handwritten resignation letter

Announcing his decision on X (formerly Twitter), Uday Kotak in a longish post wrote: "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..."

New Delhi: Uday Kotak, the founder and promoter of Kotak Mahindra Bank, has stepped down from his role as Managing Director & CEO, effective September 1, 2023. Kotak will continue to be associated with the bank as a Non-Executive Director.

Announcing his decision on X (formerly Twitter), Uday Kotak, in a longish post, wrote: 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.

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 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.

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."

Uday also shared a hand-written letter addressed to Prakash Apte Chairman Board of Directors, Kotak Mahindra Bank informing him of his decision to step down.