Kotak Mahindra Mutual Fund Launches BSE PSU Index Fund
Kotak Mahindra Bank’s shares plummeted by 10% following punitive measures imposed by the Reserve Bank of India (RBI), which restrict the bank from onboarding new customers online and issuing fresh credit cards due to IT system deficiencies in 2022 and 2023.
The RBI’s directive is anticipated to negatively impact the bank’s growth and margins, as highlighted by analysts. They speculate that the restrictions may be revisited post an external audit and corrective action plan, a process expected to span 6-12 months.
Despite the setback, Kotak Mahindra Bank remains confident that the directives will not significantly affect its overall operations. The bank reassures existing customers of uninterrupted services while affirming its commitment to swiftly resolve IT system issues.
Analysts foresee a challenging period for Kotak Mahindra Bank, with potential declines in business growth and valuation premia due to governance concerns. The inability to cross-sell products, particularly credit cards, via online channels, is expected to hinder its operations structurally.
Analysts recommend caution for investors in the short term and advise existing investors to hold positions, with key support levels identified around ₹1,600. The resolution process, if prolonged beyond six months, could further impact the bank’s revenues and costs.
At 9:20 am, Kotak Mahindra Bank shares were trading at ₹1,658.75 apiece on the BSE, marking a 10% decline in early trading.
On February 2, 2026, the Defense Minister approved Miniratna Category-I status for Yantra India Limited,…
On 2nd February 2026, U.S. President Donald Trump claimed that the United States and India…
Houses are not just places to live; some are grand, luxurious, and larger than most…
Asia is one of the fastest-growing regions in the world and is home to many…
India has formally begun preparing its military leadership for the wars of the future. On…
Union Bank of India has announced a key leadership change with the promotion of Shri…