Uday Kotak to transition to non-executive role after CEO tenure at Kotak Mahindra Bank

Uday Kotak’s tenure as the chief executive officer and managing director of the bank ends on December 31, 2023

Uday Kotak, the current Chief Executive Officer and Managing Director (CEO and MD) of Kotak Mahindra Bank, is set to assume a non-executive role in the bank after his tenure as CEO ends this year.

According to a regulatory filing on April 21, Kotak will be appointed as a non-executive, non-independent Director of the bank upon the conclusion of his term as MD and CEO.

Kotak's tenure as the CEO and MD of the bank will come to a close on December 31, 2023.

Also read: Who will take Uday Kotak’s job?

Veteran banker Uday Kotak has headed the country's fourth largest private-sector lender, Kotak Mahindra Bank (KMB), since its inception as a non-banking financial company (NBFC) in 1985. After turning into a bank in 2003, the company has grown to become a financial behemoth across segments.

Kotak Mahindra Bank, in the quarter ended December 2022, reported healthy standalone double-digit growth in the bottom line on strong growth in net interest income and improvement in asset quality.

The bank’s standalone profit after tax (PAT) rose 31 percent on-year to Rs 2,792 crore in the December quarter.

The asset quality of the bank improved sharply in the reporting quarter with gross non-performing asset (NPA) ratio declining 81 basis points (Bps) on-year and net NPA falling 36 bps on-year.

Hunt for new CEO

In November 2022, KVS Manian, whole-time Director, Kotak Bank, said that Jay Kotak, Uday Kotak's son, will not be a contender for the position, at least for now. According to Bloomberg, in February 2023 the bank roped in Egon Zehnder, a global search firm, to find a new chief.

Kotak Mahindra Bank has a strong line-up of experienced executives heading different verticals and at least two senior executives who could be potential contenders for the top job. There are market speculations that whole-time directors Shanti Ekambaram and KVS Manian are among the top contenders for the post.