On 18th Dec 2020, Uday Kotak became the world’s richest banker.
Short Summary of Uday Kotak’s early life-
He was born on 15 March 1959 in Mumbai. Uday was raised in an upper-middle-class family. He used to love playing cricket & he always wanted to be a cricketer. It was an accident when a ball hit him in his head. That led to an emergency surgery that pushed a 20-year-old Kotak to abandon his dream.
Uday was always good at mathematics, & that gave him the direction to choose a career for him. He studied at the University of Mumbai. He is married to Pallavi Kotak, & they have two children.
This all started when he established his first firm ‘Kotak Capital Management Finance Ltd’. Later this became Kotak Mahindra Finance Ltd. To start this firm he borrowed US$80,000 from his family and friends. Before 2015 Company’s assets became more than US$20 billion.
In 2019 Uday Kotak was the highest paid CEO in India with a salary of 27 lakh per month.
One of the Shocking Incident of Uday Kotak-
This partiality has a long history. When the RBI In February 2013, laid down that the promoter stake in private banks must be reduced to 15% within 12 years of commencement of business. Uday Kotak resisted implementing this directive for years, and in response, the RBI serially carved out specific relaxations for him and his bank. When the RBI finally decided to take steps, Kotak Mahindra Bank, in unprecedented action, took the regulator to court (on December 10, 2018), exchanging harsh language with the RBI in court documents.
It was shocking when the RBI decided to settle the case out of court on January 30, 2020. On terms favorable to Uday Kotak: it permitted him to keep an equity stake in the bank of 26%, and not 15% as mandated for other promoters of private banks. In June 2020, Kotak sold some shares to reduce his stake in the bank as mandated by the Reserve Bank of India.
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The Success of Uday Kotak-
Kotak’s company stands out & performed well in a country where lenders have some of the worst bad-loan ratios in the world. He has a first-rate strategy, It reduced lending to small and medium companies and unsecured individuals. They were able to choose who can be their benefited customers.
Kotak Mahindra’s share gave a return of more than 24% in each of the past three years. Looking back, Mahindra has the rewarding decision s to bet on Kotak in 1980.
Kotak’s 811 app draws its attention from November 8, the day in 2016 when the government announced Demonetization.
Honors of Uday Kotak:
2014 – Named Ernst & Young World Entrepreneur.
2014 – He Becomes chairman of IL&FS.
2015 – Sole Indian Financier to feature in Money Masters
2016 – His name added in Most Powerful People in The Financial World.
2017 – He Ranked 8th in India’s 50 most powerful people.
2017 – Businessman of the year by Economic Times.
2018 – Named “Best CEOs in the World”
2018 – E&Y World Entrepreneur
2019 – CNBC Innovator of the Year
2019 – He was one of the most highly paid CEO among the Indian banks.
‘As of April 2021 Bloomberg Billionaires Index estimated his wealth to be US$14.8 billion.’