In a letter to Prakash Apte, the chairman of the board of directors, Mr. Kotak announced his resignation, adding that it is “with immediate effect” even though he still has a few months left.
In the letter, Mr. Kotak stated, “I have thought about this choice for some time and believe this is the correct thing to do.
“Succession at Kotak Mahindra Bank has been foremost on my mind since our Chairman, myself and Joint MD are all required to step down by year-end. I am keen to ensure a smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO,
Meantime, the current joint MD, Dipak Gupta, will function as MD and CEO, subject to approvals.
As a founder, I am deeply attached to the brand Kotak and will continue to serve the institution as a non-executive director and significant shareholder. We have an outstanding management team to carry the legacy forward. Founders go away, but the institution flourishes into perpetuity,” Mr Kotak said.
He has stated that he thinks the development of sustained value is the actual test of performance.
The group’s goal of achieving equal prosperity goes beyond financial services as well. Through the Kotak Education Foundation, the organisation works with some of the most economically disadvantaged villages in India in an effort to combat poverty.
Additionally, he recounted how the establishment of a similar organisation in India, which ultimately resulted in the founding of the Kotak Mahindra Group, was sparked by the names of powerful figures in the financial industry, such as JP Morgan and Goldman Sachs.