Uday Kotak, who founded and leads Kotak Mahindra Bank, has resigned as managing director and chief executive four months before his term was set to end. 

Mr Kotak’s early exit from the country’s fourth-largest bank is due to personal reasons, according to the bank, but analysts said it would quell concerns that Mr Kotak’s presence would loom large over his successor. 

Dipak Gupta, currently the joint managing director, would carry out the chief executive’s duties until December 31, the bank added. 

“I have mulled over this decision for some time and believe it is the right thing for the institution,” Mr Kotak wrote in a letter sent to stock exchanges. 

“I thought it appropriate to hand over the baton and stagger the transition,” Mr Kotak wrote. 

India's banking regulation limits the tenure of lenders’ chief executives to 12 years if they are also large shareholders. 

The bank has already made an application for the new managing director to the RBI, the bank said in its exchange notification. In India top posts at lenders are approved by the RBI, which regulates banks. 

“If the new chief executive is from outside the bank, the transition would require a lot of hand-holding,” said Amit Tandon, chief executive of proxy advisory firm Institutional Investor Advisory Services.