Uday Kotak

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Uday Suresh Kotak
Uday Kotak.jpeg
Kotak in 2016
Born (1959-03-15) 15 March 1959 (age 65)
NationalityIndian
Education University of Mumbai
Occupations
SpousePallavi Kotak
Children2

Uday Suresh Kotak (born 15 March 1959) is an Indian banker and Founder of Kotak Mahindra Bank, where he is a non-executive director.

Contents

In the early 1980s, while India was still a closed economy and economic growth was muted, Kotak decided to start on his own, refusing a lucrative job option from a multinational. [2] Over the next few years, he diversified his business into various areas of financial services, establishing a prominent presence in bills discounting, stockbroking, investment banking, car finance, life insurance and mutual funds. On 22 March 2003, Kotak Mahindra Finance Ltd. became the first company in India’s corporate history to receive a banking license from Reserve Bank of India. [2]

Bloomberg Billionaires Index estimated his wealth to be US$14.8 billion as of April 2021. [3] In 2006 he and Goldman Sachs ended their 14-year partnership when Goldman Sachs sold their 25% stake in two subsidiaries for $72 million to Mr. Kotak. [4]

Early life and education

Kotak was raised in an upper-middle-class Gujarati Hindu family. [5] household with 60 people sharing a common kitchen under one roof.[ citation needed ] The family was originally into combined trading. He called this "Capitalism at work and Socialism at home". [6] His two pastimes had been cricket and playing the sitar. In a 2014 interview with NDTV, he admitted that he was no longer pursuing his playing of the sitar. [6] His talent in mathematics influenced his choice of career. [7] He earned a bachelor's degree from Sydenham College and completed a postgraduate degree in management studies in 1982 from Jamnalal Bajaj Institute of Management Studies. [8]

Career

After completing his MBA, Kotak started Kotak Capital Management Finance Ltd (which later became Kotak Mahindra Finance Ltd). From a seed capital of less than US$80,000 borrowed from family and friends, he converted a bill-discounting start-up into a financial services conglomerate with assets of US$68 billion (as of March 2022), and the third largest private sector bank by market capitalization in India with over 1752 branches. [9] [10] [11]

During 2014, Kotak almost doubled his wealth as shares of his Kotak Mahindra Bank hit an all-time high after he sealed a $2.4 billion deal in November 2014 for rival ING Vysya Bank, partly owned by Dutch financial services group ING. [12]

In 2015, Kotak entered the general insurance business and is partnering with telecom magnate Sunil Mittal's Bharti Airtel to start a small payments bank. [12]

Kotak has reduced his stake in the Kotak Mahindra Bank to 30% as of now, as he is required to bring it down to 20% as per RBI directions. [12]

In August 2019 he was reported to be one of the most highly paid CEOs of any Indian bank with a monthly salary of ₹27 lakh (US$34,000). [13]

He took over as President of the Confederation of Indian Industry (CII) for the year 2020-21. [14]

In August 2023, it was announced that Kotak's alternate fund management and investment advisory businesses would be combined into one entity called Kotak Alternate Asset Managers (KAAM). It was reported that the entity would have $18 billion in assets under management, making it the largest asset management entity in India. [15]

Honours and awards

Memberships

Kotak is a member of the Government of India's High-Level Committee on Financing Infrastructure, the Primary Market Advisory Committee of the Securities & Exchange Board of India, Member of the Board of Governors of the National Institute of Securities Markets and ICRIER. He is also Governing Member of the Mahindra United World College of India, and a Member of the National Council of CII.[ citation needed ] Kotak is also a member of the strategic board which advises the national law firm, Cyril Amarchand Mangaldas. [21]

Personal life

He is married to Pallavi Kotak, has two children and lives in Mumbai. [22]

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References

  1. ↑ "IL&FS - Board of Directors".
  2. 1 2 Pinelli, Maria (2 July 2014). "Rendezvous with destiny EY World Entrepreneur of the Year 2014". Forbes.com. Archived from the original on 6 July 2014. Retrieved 17 January 2018.
  3. ↑ "Bloomberg Billionaires Index: Uday Kotak". Bloomberg LP. Retrieved 28 April 2021.
  4. ↑ "End of One Era, Beginning of Another for Goldman Sachs in India".
  5. ↑ "Uday Kotak". Timesofindia.indiatimes.com. 15 March 1959. Retrieved 17 January 2018.
  6. 1 2 "Walk The Talk with Uday Kotak". ndtv.com. 26 July 2014. Retrieved 17 January 2018.
  7. ↑ Bandyopadhyay, Tamal (24 August 2018). "Uday Kotak: The 'nationalist' banker". mint.
  8. ↑ "Uday Kotak Biography". mapsofindia.com. 3 June 2015. Retrieved 17 January 2018.
  9. ↑ "Kotak Mahindra Bank Consolidated Balance Sheet, Kotak Mahindra Bank Financial Statement & Accounts". moneycontrol.com. Retrieved 15 April 2023.
  10. ↑ "Investor Relations". Kotak Mahindra Bank. Retrieved 15 April 2023.
  11. ↑ "Vir Sanghvi". virsanghvi.com. 5 September 2015. Retrieved 17 January 2018.
  12. 1 2 3 Kyle Wong. "Uday Kotak". Forbes.
  13. ↑ Rebello, Joel (14 August 2019). "Aditya Puri remains top-paid bank CEO". Economic Times.
  14. ↑ "Uday Kotak takes over as CII President". The Hindu. 3 June 2020. Retrieved 22 October 2020.
  15. ↑ "Kotak combines alternate funds, advisory into $18 billion asset management business". Reuters. 3 August 2023. Retrieved 4 August 2023.
  16. ↑ "Uday Kotak named EY World Entrepreneur Of The Year 2014". news.biharprabha.com. Biharprabha. 12 June 2014. Retrieved 17 January 2018.
  17. ↑ "ET Awards 2015: Uday Kotak wins Business Leader of the Year award". Economic Times. Retrieved 25 February 2023.
  18. ↑ Vardi, Nathan (11 May 2016). "Sole Indian Financier to feature in Money Masters: The Most Powerful People in the financial World". Forbes Magazine. Retrieved 17 January 2018.
  19. ↑ "India's 50 powerful people". India Today. 14 April 2017. Retrieved 17 January 2018.
  20. ↑ "Uday S. Kotak". World Economic Forum. Retrieved 25 February 2023.
  21. ↑ Vyas, Maulik (10 July 2015). "Cyril Shroff ropes in business luminaries like Narayana Murthy, Deepak Parekh, Uday Kotak and others for the advisory board of his law firm". The Economic Times. Retrieved 10 August 2015.
  22. ↑ "Forbes profile: Uday Kotak". Forbes.com. Retrieved 20 June 2020.
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