Kotak Mahindra Bank shares were in focus on Monday after MD and CEO Uday Kotak resigned effective September 1, four months ahead of schedule.
What Happened? Uday Kotak has stepped down as the managing director (MD) & chief executive officer (CEO) of Kotak Mahindra Bank, effective September 1, 2023, according to a BSE filing.
Following his resignation, the bank’s board appointed him as a non-executive director. Until Dec. 31 Dipak Gupta, the joint managing director, will assume the roles of MD and CEO, pending approval from the Reserve Bank of India (RBI) and the bank’s members.
Uday Kotak, the bank’s founder, has led Kotak Mahindra Bank since August 1, 2002, significantly contributing to its growth over close to four decades.
Prolonged commitment: In a note on X (previously Twitter), he expressed his commitment to ensuring a smooth leadership transition, emphasizing his continued role as a non-executive director and major shareholder. He fondly recalled starting Kotak Mahindra 38 years ago and highlighted the bank’s achievements, including providing over 100,000 direct jobs.
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Kotak’s influence as a banker is evident in the bank’s robust financials. He has also assisted regulators in drafting corporate governance guidelines and resolving the IL&FS issue.
Analysts maintain their ratings for Kotak Mahindra Bank, with Motilal Oswal giving a ‘neutral’ rating, Goldman Sachs a ‘Buy’ rating, and Jefferies also recommending a ‘Buy’.
Price Action: Kotak Mahindra Bank shares were trading 0.11% higher at ₹1,773.25 after an early spike to ₹1,784 just as markets opened for trading on Monday.
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