Curated By: Business Desk
Last Updated: September 04, 2023, 18:18 IST
Uday Kotak rose to the position of highest-paid CEO in India in 2019.
Anand Mahindra, chairman of the Mahindra Group, was a good friend of Uday Kotak and invested in Kotak Capital Management
Uday Kotak recently put an end to his ongoing 38-year-old legacy as he stepped down from the position of managing director (MD) & chief executive officer (CEO) of Kotak Mahindra Bank. He successfully spearheaded it for almost four decades after having founded the bank back in 1985. With just 13 employees, 26-year-old Uday Kotak laid the foundation of India’s third-largest private sector bank 38 years ago in an office of 300 square feet.
Mumbai-born Uday Kotak’s family were engaged in cotton trading. Therefore, he also tried his hand in the family business but felt out of place here. While pursuing an MBA, he decided to branch out into his own venture, separate from the family business. Eventually, he started a Small Finance Bank. Uday Kotak started Kotak Capital Management Finance Limited in 1985 with an amount of Rs 60 lakh.
Anand Mahindra, chairman of the Mahindra Group, was a good friend of Uday Kotak and invested in Kotak Capital Management. After this, the name of the company was changed to Kotak Mahindra Finance Limited. Uday Kotak gradually expanded his portfolio into stock broking, investment banking, insurance, and mutual funds.
Kotak Mahindra Asset Management Company was established by Uday Kotak in 1998, marking his entry into the mutual fund industry. He partnered with Pan-African Investment and launched a life insurance company around the same time, in the year 2000. Another pivotal moment in Uday Kotak’s life occurred in 2003 when Kotak Mahindra Finance Limited became the first organisation in the history of Indian corporate life to receive a banking license from the RBI. In just 11 years, Kotak Mahindra Bank rose to the position of second-largest commercial bank in the nation. The market capitalization of Kotak Mahindra Bank is Rs 3.50 lakh crore as of now.
Uday Kotak rose to the position of highest-paid CEO in India in 2019. His pay was Rs. 27 lakh per month. Uday Kotak is the richest banker in India, with a net worth of Rs 1,10,020 crore, according to a DNA report.
