Uday Kotak has been leading Kotak Mahindra Bank (KMB) since its inception as a non-banking financial institution in 1985. It became a commercial lender in 2003. He has a net worth of about $13.4 billion.
Mr Kotak will transition from his CEO position by the end of next year, after central bank guidelines capped tenures for Indian business heads.
His son Jay Kotak, who is currently working as VP within the bank is not a contender for the CEO position (as confirmed by senior management of the bank).
KMB’s board is speculated to have engaged consulting firm Egon Zehnder to lead a global search for the position.
Group Presidents and Whole Time Directors Shanti Ekambaram and KVS Manian are the internal candidates for the top job, according to the people. The board is expanding the search to ensure it finds the best possible replacement.
Though optically it seems that the bank is open towards the external candidates, practically it’s challenging to invite an outsider when there are internal committed people working for decades within the system.
(Ekambaram joined Kotak Mahindra Bank in 1991 and is now it’s highest-ranking woman. She oversees several functions including online saving accounts business, treasury, public affairs and human resources. She also continues to lead its consumer banking.
Manian, who joined in 1995, is part of the group management council, heading wholesale banking and wealth management business. He also has oversight responsibility of investment bank and institutional equities businesses.)
Uday Kotak has resigned 4 months before his due date of retirement.
Reasons
He will continue to be in the role of non-executive director of the bank as already decided.
The Board has approved Mr. Dipak Gupta as interim MD & CEO, till December 31, 2023.
Besides, the Bank has already made an application to the RBI for the approval of the new MD & CEO, with effect from January 1, 2024. (speculated internal names continue to be Shanti Ekambaram and KVS Manian)
https://www.bseindia.com/xml-data/corpfiling/AttachLive/0dfc2089-b952-44b7-9b2f-70c3055241b5.pdf
Contrary to speculations of the internal names, KMB has appointed an external person, Ashok Vaswani as the next CEO, MD.
Ashok Vaswani is a world-class leader and banker with digital and customer focus. I am proud that we bring a “Global Indian” home to build Kotak and India of tomorrow,” said former CEO and founder, Uday Kotak.
Key pointers on Ashok Vaswani –
KVS Manian, the Joint MD has resigned after 3 decades with the bank.
Market in the short term is not going to like him leaving KMB.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/4804c6ec-94e2-4cba-90af-289923cd66e8.pdf