Kotak Mahindra Bank shares fall 4% to fresh 52-week low

Kotak Mahindra Bank share price: Shares of Kotak Mahindra Bankfell 4% to hit a fresh 52-week-low of ₹1,561 today (May 2). This comes after the private lender announced the departure of Joint Managing Director KVS Manian. The shares of Kotak Mahindra Bank ended last week 10% weaker after the Reserve Bank of India (RBI) restricted the bank from onboarding new customers through online and mobile banking channels and issuance of fresh credit cards.

A man walks past the Kotak Mahindra Bank branch in New Delhi, India.(Reuters)

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Meanwhile, domestic brokerage Nuvama downgraded Kotak Mahindra Bank stock to reduce from buy as it noted, “Losing a long standing KMP is a negative amid many KMP exits in the last one year and on the back of RBI’s recent ban on Kotak. With a relatively new CEO, many senior exits bunched up over six months, higher-than-industry attrition rate and RBI’s digital ban highlighting that digital prowess that the bank flagged off as a key strength is lacking as viewed by the regulator, we downgrade to ‘REDUCE’ from ‘BUY’.”

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Jefferies maintained a hold call on the stock with a target price of ₹1,970 as it said that senior-level exits can affect growth and valuations while Macquarie maintained a neutral rating with a target price of ₹1860.

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KVS Manian was elevated to joint MD of Kotak Mahindra Bank in February this year. In his resignation letter to the board members, he said, "I hereby tender my resignation from the services of Kotak Mahindra Bank for pursuing other opportunities in Financial Services, that I am exploring. Consequently, I would also step down from the Board of the Bank."

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