Kotak Mahindra Bank founder Uday Kotak, who stepped down as the bank’s managing director and chief executive officer in September, believes financial risks should be undertaken only when one completely understands the subject.
“If you do not understand something, do not do it,” the veteran banker told the Financial Times, adding that this has been the principle followed at the Kotak Mahindra Bank for the last 40 years.
“Very often finance professionals will give you very complex structures. I think it requires humility to say ‘I do not understand it, therefore I will not do it’. It is better to be stupid now than sorry later,” the newspaper quoted him as saying in a report published on November 12.
Also Read: Why Uday Kotak stepped down ahead of his tenure as MD and CEO?
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Kotak, 64, holds a 26 percent stake in Kotak Mahindra Bank, one of India’s leading private sector banks. The lender last month announced industry veteran Ashok Vaswani as his successor.
Although Vaswani had been associated with some of the top banks, including Citigroup and Barclays, analysts are concerned whether he would be able to fill in the void created at Kotak Mahindra Bank due to the stepping down of its founder as the MD and CEO.
“Ashok is a world class leader and banker with digital and customer focus. I am proud that we bring a “Global Indian” home to build Kotak and India of tomorrow,” Kotak had posted on social media on October 21, when Vaswani was confirmed as his successor.
In the trading session on November 13, Kotak Mahindra Bank’s shares settled at ₹1,748.35 on the BSE, down 0.22 percent as against the previous day’s close.
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Updated: 13 Nov 2023, 10:07 PM IST
