Uday Kotak's glory, this is how Kotak Mahindra Bank became worth Rs 947 crore to Rs 3.50 lakh crore in 20 years

Uday Kotak, who started Kotak Mahindra Bank, resigned from the post of MD and CEO of the bank last week. Under his leadership, the bank has grown by 22,000 percent in just 20 years. Let us tell you how...

Kotak Mahindra Bank completes 20 years this year. Its founder Uday Kotak started it as Kotak Mahindra Finance Company in 1985, and in 2003 it got a banking license. When Uday Kotak resigned from the post of MD and CEO of the bank last week, then it has become a brand with a value of 3.51 lakh crores, while its value was only 947 crores 20 years ago. How did this charisma happen?

Kotak Mahindra Bank started functioning as a bank on 6 February 2003. Then the market valuation of its parent company was just Rs 947 crore. Today the value of the bank's shares is such that its market capitalization has reached Rs 3.51 lakh crore. According to this, in just 20 years, the bank's stock has registered a growth of 22,000 percent.

Share price was less than Rs 8

If we look at the past, when Kotak Mahindra Bank started functioning, then the share of Kotak Mahindra Finance parent company was Rs 7.99. However later this parent company was merged with the bank. Today, after 20 years, the share price of this company has reached Rs.1764.60.

A millionaire would have made an investment of lakhs of rupees.

Imagine how it would have been if in 2003 you had deposited just Rs 1 lakh in the shares of the bank. You would have got around 12,515 shares of Kotak Mahindra Finance then. The same stock would have generated a return of Rs 2.20 crore to you on today's date. Apart from this, the benefits of dividend, bonus shares, share split that you get on the shares in the meantime are different. That means you would have been the owner of more than Rs 2.20 crore in true sense.

An investment of Rs 10,000 would be Rs 300 crore.

Kotak Mahindra Finance was started in 1985. Its founder Uday Kotak, while resigning from the post of MD, wrote in his letter that a person who had invested Rs 10,000 in 1985 would have been the owner of Rs 300 crore today. Due to share holding in the bank, the net worth of Uday Kotak himself has increased to 14.5 billion dollars.

Let us tell you that Mahindra's name was associated with Kotak Mahindra Bank in 1985 itself. Anand Mahindra and Uday Kotak are friends. The angel investor of this startup, which started with an investment of Rs 30 lakh, was Anand Mahindra who had then invested Rs 1 lakh. Praising the ability of Uday Kotak, he has said on many occasions that this investment has been his most profitable and return giving investment.