Uday Kotak reflects on time as head of bank in latest annual report
An investor who invested Rs 10,000 with Kotak Mahindra Group in 1985 would be worth around Rs 300 crore today, according to Uday MD and CEO of Kotak, Kotak Mahindra Bank (KMB).
“as I am Stepping down from my role all the time Soon, I’d like to think about what this role means. I am a director, member of the board of directors and a defined strategic contributor in Indian terminology as a promoter.
“Yes, I have spent most of my life here, starting from scratch with very little capital in 1985, 3 people and a 300 square foot office,” Kotak recalled in the private lender’s latest issue. Annual Report.
He assured that the group is in the right place at the right time.
“We are a perfect product of India’s growth story and development of the financial sector. We are a perfect product of India’s growth story and development of the financial sector.
“We have created value for our stakeholders and are now creating around 1,000 direct jobs and double that in indirect jobs,” said the KMB Chairman.
to move on
Moving forward, Kotak sees his role as a non-executive governance member and strategic shareholder with a long-term perspective of nurturing a world-class organisation.
“It is unusual in today’s world of banking anywhere to have an individual with nearly 26 per cent skin in the game with disproportionate family assets in one share, emotionally attached to living his dream of making India proud.
I am confident that consensus and commitment on the part of our shareholders, Board of Directors, and management will guide us through the changing times. And, of course, dealing with the ever-evolving regulatory and policy landscape.
Avoid the accident-free road mentality
Kotak noted that the turbulent period after 2008 saw the Indian financial sector many crises until around 2020. And that created a certain background.
“We should avoid thinking that we want accident-free roads and therefore will restrict cars. Instead, to take this analogy even further, we need more roads, more cars, better signals and traffic regulation.
“Incidents must be minimized and managed, and they cannot be eliminated without having a significant impact on growth aspirations. The policy and regulatory framework must align with this,” he said.
Prevent bureaucracy in financial services
Kotak emphasized that entrepreneurship should be allowed to flourish and he was fortunate to see this through most of his career.
“There is a need to build regulatory trust that requires action on both sides of the aisle. I feel that financial sector players risk becoming more automated, which dampens entrepreneurial flair because the fear of making a mistake outweighs the joy of creativity and development.
“While we need the ‘eye of Arjuna’ on risk management, we must prevent bureaucracy in financial services,” he said.
KMB, together with its subsidiaries, is a diversified financial services group that provides a wide range of banking and financial services including retail banking, commercial banking, treasury and corporate banking, investment banking, equity brokerage, vehicle financing, services advisory, asset management, life insurance, general insurance..