25-Apr-2024
2 mins read
Kotak Mahindra Bank's share price declined sharply and fell 10% on Thursday, 25 April 2024, after RBI’s punitive actions against it. The Reserve Bank of India on Wednesday directed Kotak Mahindra Bank to stop onboarding new customers through its online and mobile banking channels and barred it from issuing fresh credit cards with immediate effect.
RBI has barred the private sector bank Kotak from new issuance due to deficiencies in the Bank’s IT system in 2022 and 2023.
Kotak Mahindra Bank’s management believes that these directions by RBI will not materially impact its overall business.
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What did Kotak Mahindra Bank Said in Exchange Filling?
Kotak Mahindra Bank informed in an exchange filing –The bank is taking steps to adopt new technologies to strengthen its IT systems. They continue working with the RBI to resolve the issue as early as possible.
The bank would like to reassure its existing customers that its services, including credit card, mobile banking, and net banking, are uninterpreted.
It added that Kotak Mahindra Bank branches will continue to work to onboard new customers offline, providing them with all banking services except the issuance of new credit cards.
Many analysts believe that this action will negatively impact Kotak Mahindra Bank's growth. They expect restrictions will be reviewed upon completion of the external audit and corrective action plan, which will typically take 6-12 months.
Kotak Mahindra Bank Q4 Results Date
In the current week, on March 29, Kotak Mahindra Bank FY24 Q4 results are scheduled. It will be interesting to see how prices will react after results.
Currently, the Kotak Mahindra Bank share price is trading at Rs 1658, with an intraday decline of -10.02%. Today, it hit a 52-week low, and prices slipped below the 200-day exponential moving average.
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