Kotak Mahindra Bank share price gained a percent on Monday (4th Sep 2023) after Uday Kotak resigned from MD & CEO position of the bank, effective September 1, 2023, four months ahead of schedule.

He will continue to serve as a non-executive director of the bank. Kotak Mahindra Bank shares gained as much as 1% to ₹1,789.05 apiece on the BSE.

On 1 September 2023, Kotak announced to step down as managing director and chief executive officer of the bank and the baton was passed to Dipak Gupta, the Joint Managing Director at Kotak Mahindra Bank.

Gupta will carry out the duties of the MD and CEO until 31 December, which is subject to the approval of the RBI and the members of the bank.

 Kotak, a founding member of the bank, has been part of the institution for the past 38 years.

Under Kotak’s leadership, the bank has become the fourth-largest private bank and has established a prominent presence across the financial services spectrum, including asset management, broking, investment banking, life insurance, etc.

Analysts believe a smooth takeover under the new leadership would be a key aspect to watch out for.

 The bank has already submitted two names for the CEO role to the RBI and is waiting for the regulator’s approval. As per media reports, two senior management team members and whole-time directors, KVS Manian and Shanti Ekambaram, are the contenders for the top job.

Brokerage firm Motilal Oswal Financial Services noted that Kotak Mahindra Bank delivered steady performance over the years, with its RoE gradually improving to over 14%..

Source : Mint