Hi,
The irony is that as per RBI they have been highlighting the IT tech issue from the year 2022 onwards.so by the time RBI banned them in April 2024 it is more than 2 years. so it is quite shocking to see Bank not adhering to RBI for almost 2 years!! And it was Mr. Uday Kotak who was at the whelm till 2023 end. So it is evident that he basically ignored the RBI concerns… Moreover his son is heading the digital 811 part, so the ignorance of not following RBI’s diktat in an era where digital expansion is the way forward is actually failure of the management. And when you compare to other reputed private sector banks like HDFC they are in a physical branch expansion spree whereas Kotak has become lethargic in physical branch expansion mode and relied solely on digital mode.
Just within 7 days of the crisis, joint MD resigns from the post (who was elevated just 2 months back) after a stint of almost 29 years in a bank. Mr. KVS Manian is a veteran for the bank, why would he resign and leave his child in this difficult times, instead of helping the newly joined Boss? Seems like a leadership crisis also on the way!!
Moreover when I see Mr. Uday Kotak now a days he seems to be preaching whole world what to do and what not to do. But the crisis of leadership and technology fiasco at the kotak bank seems to have happened under his nose. lets see how this pans out…
Disc: Invested at higher levels, so opinion might be biased.
Thanks,
Deb
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