‘A remarkable journey... I don’t wish to keep hankering for seat’: Uday Kotak
(This story originally appeared in on Sep 03, 2023)
Uday Kotak, who in 1985 founded Kotak Mahindra Finance, a finance company that transformed into Kotak Bank with a Rs 3.5 lakh crore marketcap, has stepped down as MD & CEO. In an interview with TOI’s Mayur Shetty, Kotak sought to explain why exiting four months before the end of his tenure in Dec 2023 should not come as a surprise. Excerpts from the interview:
Your resignation has come as a surprise. Why did you step down ahead of tenure?
I wanted to do the right thing for the institution. The timeline for the departure of the chairman, managing director, and joint managing director was set for December 31. Given this transition phase, we felt a sequenced approach would be best for the institution’s stability. I wanted to leave after fulfilling my responsibilities, which included the approval of the financial accounts for FY23 at the AGM on August 19. Additionally, I have personal and family commitments… my son’s wedding is in November. Considering the proximity of these events to the end of my tenure, it was appropriate to hand over the baton now. This is the reason, there is no other surprise. Finally, the institution is more important than any individual.
What about succession?
The bank has already submitted a succession application to the RBI for both the chairman and MD positions. The board has appointed Dipak Gupta as the CEO for a four-month period, pending RBI approval, and I have transitioned from MD to non-executive director.
You could have continued till December.
There is logic to what we have done. Sequencing the transitions was essential to prevent all three key figures from departing simultaneously. I chose to step down first to fulfill my responsibility.
