Within hours of declaring his intention to resign as Kotak Mahindra Bank’s MD and CEO, Uday Kotak said that the firm has submitted two names to the RBI for the position.
Kotak Mahindra Bank has forwarded two names to the Reserve Bank of India (RBI) to take over as his successor, according to him, who said this in an exclusive interview with a news channel shortly after announcing his plan to stand down as the lender’s MD and CEO.
“We have sent two names for the MD and CEO role to RBI in order of priority,” he told, without disclosing if both the names were of internal candidates or a mix. In closing, he said that the bank had fulfilled all of its obligations. Required RBI clearances. I think this is the greatest order to guarantee a smooth transition and eliminate any doubt,
he said it will now serve as the bank’s non-executive director. His five-year term as a non-executive director of the bank would not be subject to rotational retirement. Up until December 31, 2023, Dipak Gupta, the Joint Managing Director, will serve as the organization’s Managing Director and CEO, subject to the RBI’s and the bank’s members’ permission. According to him, the RBI has mandated that the bank’s three leadership positions—CEO, Chairman, and Joint MD—resign by December 31, 2023.
In accordance with the regulatory rules, we are all in a transitional phase. I thought it only right that we sequence the transition since all three of us were expected to leave by December 31,” he said, adding that his decision was voluntary and that the board had accepted his resignation. he stated that Dipak Gupta has been named as the interim MD and CEO, subject to RBI approval and that his tenure also expires on December 31. He claimed that the lender has also acknowledged today that it submitted its application to the RBI for the new CEO on time.
“We are awaiting RBI approval on the new CEO names. Hopefully, within this period, we will have RBI approval for the CEO who will then take charge from Jan 1, 2024,” he said.
As his older son is getting married in November, he claimed he has personal and family obligations and had been debating his option to resign for some time. I just believed that it would be better for me to move and step down early rather than wait until the very last minute, he added.
According to the former MD and CEO, the bank has taken the necessary steps to implement its commitment to a peaceful transition, and the future looks very promising for the strength and stability of this Bank.
The Indian financial sector, which is in a unique position in history to reinvent itself, as well as his bank, he continued, have huge opportunities. In my capacity as a non-executive director and sizable stakeholder, I would dearly love to see this institution prosper in the years to come.
The most crucial lesson, according to Kotak, is that “what you create must outlive you.” “As you develop an institution, there must be a goal, a procedure, passion, trust, and transparency. Even in one of the industries with the highest levels of regulation, it is crucial to maintain the spirit of entrepreneurship. He continued by expressing his gratitude to all parties involved in helping him realize his dream, including the board, the staff, the regulators, friends, family, and others.
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Kotak Mahindra Bank
Established in 1985, This Bank has evolved over the years to become one of India’s leading financial institutions. Its journey is marked by innovation, customer-centricity, and a commitment to excellence. With a strong presence both nationally and internationally, Kotak Mahindra Bank has successfully carved a niche for itself in the banking industry.
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