‘My fiduciary role in the transition is over’

Crucial to have banks majority-owned by local investors: Kotak

- Gopika Gopakumar

Billionaire Uday Kotak, who stepped down as the chief executive of Kotak Mahindra Bank Ltd on 1 September, believes he has fulfilled his fiduciary duty in ensuring leadership transition in the bank he founded.

The onus to approve the name of a CEO for the bank now lies with the Reserve Bank of India (RBI) after Kotak, 64, surprised everyone by stepping down from the role of managing director and CEO four months before his term was to end on 31 December.

Joint managing director Dipak Gupta will take charge as interim managing director and CEO until 31 December, subject to the approval of RBI. Kotak will, however, continue his association with the bank as a non-executive director.

In an interview, Kotak said Indian institutions must prioritize value creation for local investors, emphasizing the importance of having banks that are majority-owned by domestic investors. While Kotak discussed several topics, he remained tight-lipped about his future plans and questions related to the banking regulator. Edited excerpts:

Why did you decide to step down well ahead of your term?