28 April 2024: Kotak Mahindra Bank's shares have been falling recently due to a restriction placed on the bank by the Reserve Bank of India (RBI). On April 25, 2024, the RBI barred Kotak Mahindra Bank from onboarding new customers through online and mobile banking channels, and from issuing new credit cards. This restriction came after the RBI found significant shortcomings in Kotak Mahindra Bank's IT systems. These shortcomings could potentially put customer data at risk and disrupt banking operations.
The stock price fell over 10% on the day the restriction was announced, and has continued to decline slightly since then.
05 March 2024: Kotak Bank's shares are declining for several reasons. Firstly, wholesale deposits have been volatile and costly due to negative systemic liquidity. Additionally, there were downgrades and price target reductions by several top brokerages following the lender's September quarter earnings and the appointment of an external CEO & MD instead of an internal candidate, which was the expectation. These factors collectively contribute to the downward trend in Kotak Bank's share price.
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