New Delhi, Sep 2 (IANS): Uday Kotak has resigned as the Managing Director and CEO of Kotak Mahindra the Bank with effect from September 1.

Kotak, whose resignation was considered at the Bank's Board Meeting on Saturday, will continue as a non-executive Director of the Bank.

In a letter to Prakash Apte, Chairman of the Board of Directors, Kotak said he has resigned "with immediate effect" though he still has a few months to go.

"Succession at Kotak Mahindra Bank has been foremost on my mind, since our Chairman, myself and Joint MD are all required to step down by year-end. I am keen to ensure smooth transition by sequencing these departures. I initiate this process now and step down voluntarily as CEO," he said.

As an interim arrangement, Dipak Gupta, the Joint Managing Director, will carry out the duties of the Managing Director & CEO until December 31, 2023, subject to the approval of the Reserve Bank of India and the members of the Bank.

The Bank has already made an application to the RBI for the approval of the new Managing Director & CEO, with effect from January 1, 2024.

Kotak is the Founder and Promoter of the Bank and has been the Managing Director & CEO of Kotak Mahindra Bank Limited (earlier known as Kotak Mahindra Finance Limited) since August 1, 2002.

He has played an important role in the institution's growth over the past 38 years. Under Kotak's leadership, Kotak Mahindra group established a prominent presence in every area of financial services from stock broking, investment banking, car finance, life insurance and mutual funds.