‘I stand in a lonely place of being a founder..’: Uday Kotak’s resignation letter to Kotak Mahindra Bank. Full text here

Uday Kotak on Saturday informed that he had resigned as the Chief Executive Officer and Managing Director of Kotak Mahindra Bank from 1 September.

Uday Kotak took to microblogging site ‘X" (formerly Twitter) to pen a heartfelt note about his journey with Kotak Mahindra Bank. Uday Kotak started his letter by saying, “It has been 38 long years since this institution was created, with 3 employees in Fort, Mumbai, it is now a pre-eminent Bank and financial conglomerate, having presence across India and in 5 other countries, with over 100,000 employees”.

Uday Kotak also attached a note with his letter in his post on X. He said that the joint MD, Chairman, and Uday Kotak himself are required to step down by December. However, Uday Kotak sprung his resignation three months ahead of schedule.

“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.” Kotak mentioned in his post.

See the letter hand-written by Uday Kotak here

"September 1, 2023.

Mr. Prakash Apte,

Chairman,

Board of Directors,

Kotak Mahindra Bank Ltd.

Mumbai.

Dear Sir,

It has been 38 long years since this institution was created, with 3 employees in Fort, Mumbai, it is now a pre-eminent Bank and financial conglomerate, having presence across India and in 5 other countries, with over 100,000 employees. I have cherished being a of this entire journey. It is now time to move on.

Although, I still have a few months to go, my resignation as Managing Director & CEO of the Bank with immediate effect.

I have mulled over this decision for some time and believe this is the right thing for the institution.

On December 31, 2023, the terms of yourself as Chairman, myself as Managing Director, and Mr Dipak Gupta, Joint Managing Director, expire.

With a view to sequencing this process from a transition and stability perspective, I have decided to take this action after completion of the financial year and the AGM for FY 2023. The Bank has taken necessary steps on succession and we await the RBI's decision. The bank's senior management team with years of experience is well placed to carry on this legacy.

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 I to hand over the baton and stagger the transition.

In the recent past, we have taken various measures to fortify our institution and make it future ready. These include steps taken to ensure it's financial stability and strengthen the risk matrix. We have added talent in the areas of technology, customer experience, marketing and risk analytics. This further strengthens our outstanding leadership team.

I stand in a lonely place of being a founder, promoter and significant shareholder of this great institution. It also bears our family name and carries that as its brand. The institution that we have together built stands for purpose, trust and integrity. I am committed as a stakeholder to see this institution sustain and grow.

In these changing times, I envision an India leading the world in the years ahead. I am confident that this majorly Indian owned institution will play an important role in India's destiny. As new leaders take over, I look forward to my new role as a non-executive director, a role entrusted to one by the Board and an overwhelming majority of the shareholders the Bank.

I am grateful for the support, guidance and dedication of our employees, colleagues, stakeholders, regulators, directors, and my friends, family and all others who have helped me in living my dream.

I would request you to take necessary steps as may be required , in view of my decision.

With best regards,

Yours sincerely,

Uday

(Uday Kotak)"

Timeline of events in the Kotak Mahindra group

It was a bill discounting deal with Nelco that began the financial services journey of Kotak Mahindra group founder Uday Kotak. Founded in 1985, the Kotak Mahindra group started a bill discounting business under Kotak Mahindra Finance. As per public disclosures, Kotak Mahindra Finance got a banking licence from the Reserve Bank of India (RBI) in February 2003 and became the first non-banking finance company (NBFC) in India to convert into a bank: Kotak Mahindra Bank Ltd.

1985 – Kotak Mahindra Finance commences bill discounting business

1987 – Enters lease and hire purchase business

1990 – Launches auto finance division for passenger cars

1991 – Establishes investment banking

1995 – Launches KMCC, a joint venture with Goldman Sachs Group for investment banking

1996 – Launches Kotak Mahindra Primus Ltd. Kotak Mahindra takes significant stake in Ford Credit Kotak Mahindra Ltd to finance Ford vehicles

1998 – Launches India’s first gilt fund through Kotak Mahindra Asset Management Company

2001 – Launches Kotak Mahindra Old Mutual Life Insurance in partnership with Old Mutual Plc

2003 – Kotak Mahindra Finance gets converted into commercial bank Kotak Mahindra Bank

2004 – Kotak Mahindra group enters alternate assets business, launches private equity fund

2005 – Kotak Alternate Assets launches real estate fund

2006 – Buys out Goldman Sachs’ equity in KMCC and Kotak Securities

2008 – Opens representative office of Kotak Mahindra Bank in Dubai

2009 – Launches pension fund under India’s National Pension System (NPS)

2014 – Acquires 15% equity stake in Multi Commodity Exchange of India (MCX)

2015 – RBI approves merger of ING Vysya Bank with Kotak Mahindra Bank

2016 – Acquires 1 million equity shares of Institutional Investor Advisory Services India Ltd

2017 – Kotak Mahindra Bank unveils 811 account; acquires BSS Microfinance Pvt Ltd

2018 – Buys out 26% Old Mutual Plc UK stake in Kotak Mahindra Old Mutual Life Insurance

2019 – Kotak Mahindra Bank launches first international branch in Dubai

2020 – Kotak Mahindra Bank raises ₹7,400 crore through a qualified institutional placement of shares

2021 – Kotak Mahindra group acquires vehicle financing portfolio of Volkswagen Finance

2022 – The bank acquires DLL India’s agriculture and healthcare equipment financing portfolio

2023 – Kotak Mahindra Bank announces acquisition of microfinance company Sonata Finance

(Source: Kotak Mahindra Bank website)