Kona kona Kotak: The tale of India’s richest banker
From a seed capital of less than US$80,000 borrowed from family and friends, Uday Kotak metamorphosed a bill-discounting start-up into a financial services amalgamation with assets of US$19 billion (as of March 2014), and the second-largest scheduled commercial bank by market capitalization in India (private and PSU) with over 1250 branches.
Uday Kotak with his will power and hard work has emerged as a triumphant banker. It is surmised that this successful entrepreneur and Indian banker is blessed with a net worth of around 10 billion USD.
Standing tall with his contemporaries with a staggering fortune and world recognition, Kotak once said “Things change so fast, you can’t afford to be complacent”.
This shows the dedication, perseverance put in by this great person even at the pinnacle of success. He was bestowed with these titles year by year:
2014 – Named Ernst & Young World Entrepreneur
2014 – Become chairman of IL&FS
2015 – Sole Indian Financier to feature in Money Masters
2016 – Most Powerful People in The Financial World
2017 – 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 – One of the most highly paid CEO among the Indian banks
He was the sole Indian Financier to feature in Money Masters: The Most Powerful People in The Financial World, by Forbes magazine, US (May 2016). India Today magazine ranked him 8th in India’s 50 most powerful people of 2017 list. None of it got him distracted from his path and endeavours to bring a change in everyone’s life.
Kotak is now a member of the Government of India’s High-Level Committee on Financing Infrastructure, the Primary Market Advisory Committee of the Securities & Exchange Board of India. He is credited with a Member of the Board of Governors of the National Institute of Securities Markets and ICRIER.
He is also a Governing Member of the Mahindra United World College of India and also an esteemed member of the National Council of CII.
Kotak proved that if you put passion into practice, these ideas can have amazing personal and workplace benefits. However, it takes a personal investment of time to learn and practice these principles. These principles are not second nature for most people, but they can be eventually; it takes education, time, and intent.
Kotak is a brand known worldwide which requires practice and patience.
Uday Kotak was born in a Gujarati family and resided in a joint family consisting of 60 people. Much to surprise, Uday did not join their flourishing cotton trading business. Rather, he decided to set up something on his own.
He decided to venture into the field of entrepreneurship when it was not a fashion. While doing his MBA, Kotak decided to start on his own, in the early 1980s, on his father’s insistence, Kotak started his own small financial agency at Navsari building premise from a 300 sq. ft. office. Uday started his finance and bill discounting business with a seed capital borrowed from family and friends. The major part of investment comes from his best friend Anand Mahindra. Therefore the financial agency was named Kotak Mahindra.
The clear characterization of how the people of such stature reach heights by employing their skills and talent. The 61-year-old started a finance firm in 1985 then went on to convert it into a bank in 2003. His close friend and business partner Mahindra lent him Rs 1 lakh and promoted his finance firm, Kotak Mahindra Finance Ltd. Over the next few years, he varied his business into different areas of financial services, laying the foundations of a prominent presence in bills discounting, stockbroking, investment banking, car finance, life insurance, and mutual funds. On 22 March 2003, Kotak Mahindra Finance Ltd. became the first company in India’s corporate history to receive a banking license from the Reserve Bank of India.
Uday Kotak is termed as the “nationalist” banker as his bank is the only private bank that isn’t foreign-owned, with 47% foreign ownership.
Uday Kotak paved his way to becoming the best banker and was instrumental in ushering in a wide array of reforms. It was under his leadership that brand Kotak got international power and recognition. We hope this success story of Uday Kotak will inspire you.
Kona kona Kotak is a jingle we will remember always. Do you have a success story of Indian entrepreneurs like Uday Kotak to share?
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