Uday Kotak

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Uday Kotak
Born (1959-03-15) 15 March 1959 (age 60)
ResidenceMumbai, Maharashtra, India
NationalityIndian
EducationUniversity of Mumbai (BS, MBA)
Occupation
Salary3.24 crore (US$470,000) (FY-2019)[2]
Net worthUS$14.8 billion (October 2019)[3]
Spouse(s)Pallavi Kotak
Children2

Uday Kotak (born 15 March 1959) is an Indian billionaire banker, and the executive vice chairman and managing director of Kotak Mahindra Bank.

In early 1980s, while India was still a closed economy and economic growth was muted, Kotak decided to start out on his own, refusing a lucrative job option from a multinational.[4] 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.[4]

Forbes estimated his wealth to be $14.8 billion in 2019.[5] In 2006 he ended a 14 year partnership with Goldman Sachs by acquiring its 25% stake in two subsidiaries for $72 million.[6]

Early life and education[edit]

Kotak was raised in an upper middle class Gujarati Lohana joint-family [7] household with 60 persons sharing a common kitchen under one roof. The family was originally into cotton trading. He called this "Capitalism at work and Socialism at home".[8]

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.[8]

His talent in mathematics influenced his choice of career. 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.[9]

Career[edit]

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$19 billion (as of March 2014), and the second largest schedule commercial bank by market capitalization in India (private and PSU) with over 1250 branches.[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 enters the general insurance business and is partnering 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$39,000).[2]

Honours and awards[edit]

  • In June 2014, he was named Ernst & Young World Entrepreneur of the Year 2014.[13]
  • He was the sole Indian Financier to feature in Money Masters: The Most Powerful People in The Financial World, by Forbes magazine, US (May 2016)[14]
  • India Today magazine ranked him #8th in India's 50 most powerful people of 2017 list.[15]
  • In 2018, he was named one of the "Best CEOs In The World" by the CEOWORLD magazine[16].[citation needed]

Memberships[edit]

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 Member of National Council of CII.[citation needed] Kotak is also a member of the strategic board which advises the national law firm, Cyril Amarchand Mangaldas.[17]

Allegations of fraud and forgery[edit]

In October 2019, the Prime Minister's Office demanded the Finance Ministry to take action against Uday Kotak and other senior officials of Kotak Mahindra for "alleged conspiracy, fraud and forgery" based on a complaint citing "criminal conspiracy and illegal activities."[18]

Personal life[edit]

He is married to Pallavi Kotak, has two children and lives in Mumbai.[3]

References[edit]

  1. ^ "Board of Directors".
  2. ^ a b "Aditya Puri remains top-paid bank CEO". Economic Times. 14 August 2019.
  3. ^ a b "Uday Kotak". Forbes.com. Retrieved 17 January 2018.
  4. ^ a b Pinelli, Maria (2 July 2014). "Rendezvous with destiny EY World Entrepreneur of the Year 2014". Forbes.com. Retrieved 17 January 2018.
  5. ^ "Uday Kotak". Forbes. Retrieved 17 January 2018.
  6. ^ Dutta, Anshuman G (9 February 2010). "'Uday Kotak and his men threatened my family'". mid-day.com.
  7. ^ "Uday Kotak". Timesofindia.indiatimes.com. 15 March 1959. Retrieved 17 January 2018.
  8. ^ a b "Walk The Talk with Uday Kotak". ndtv.com. 26 July 2014. Retrieved 17 January 2018.
  9. ^ "Uday Kotak Biography". mapsofindia.com. 3 June 2015. Retrieved 17 January 2018.
  10. ^ "Dr. K. C. Chakrabarty, Deputy Governor, Reserve Bank of India, formally inaugurates Kotak Mahindra Bank's landmark 500th branch and 1,000th ATM" (PDF). Kotak.com. Retrieved 4 September 2015.
  11. ^ "Vir Sanghvi". virsanghvi.com. 5 September 2015. Retrieved 17 January 2018.
  12. ^ a b c Kyle Wong. "Uday Kotak". Forbes.
  13. ^ "Uday Kotak named EY World Entrepreneur Of The Year 2014". news.biharprabha.com. Biharprabha. Retrieved 17 January 2018.
  14. ^ 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.
  15. ^ "India's 50 powerful people". India Today. 14 April 2017. Retrieved 17 January 2018.
  16. ^ "Best CEOs In The World 2018".
  17. ^ Vyas, Maulik (10 July 2015). "Cyril Shroff ropes in business luminaries like Narayana Murthy, Deepak Parekh, Uday Kotak and others for advisory board of his law firm". The Economic Times. Retrieved 10 August 2015.
  18. ^ PMO Directs Finance Ministry To Take Action Against Kotak Mahindra Bank MD And CEO

External links[edit]