Kotak Bank falls another 3% as Manian exit adds to talent loss
Kotak Bank shares fell as much as 4.4% during Thursday's trading to ₹1,552.4 before recovering partially. On the BSE alone, over 1.05 crore Kotak shares changed hands against a two-week daily average of 5.87 lakh shares.
Mumbai: Shares of fell almost 3% on Thursday, as traders mounted bearish bets on the stock after the lender said joint managing director KVS has resigned. The stock ended at ₹1,578, the lowest closing in three-and-a-half years, extending its recent slide after regulatory action against the private bank.Analysts said the adverse news flow in the last couple of weeks has limited the chances of upside in the stock for now.
"The news of the exit is negative for the bank since there have been multiple exits at the senior level in the past 6-8 months," said Dnyanada Vaidya, research analyst, BFSI, Axis Securities. "These exits alongside considering this is after the RBI ban on onboarding new customers digitally are expected to impact the bank's growth prospects and profitability."
fell as much as 4.4% during Thursday's trading to ₹1,552.4 before recovering partially. On the BSE alone, over 1.05 crore Kotak shares changed hands against a two-week daily average of 5.87 lakh shares. Federal Bank shares gained 3.4% to ₹168 on Thursday on speculation Manian is likely to join the Kerala-based lender as its head.
The Kotak Bank stock has slumped over 17% this year, compared to a 2.07% up-move in Bank Nifty.
"The exit (of Manian) has added fuel to the fire after the RBI imposed restrictions on the bank to onboard new customers through its digital platform," said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services. "This is likely to have a short-term impact on a sentimental basis, unless it is followed by further negative news flows."
Axis' Vaidya said that the credit card segment had been performing well, driving growth in the unsecured segment and the market will remain watchful of management commentary on growth trajectory going forward.
Source: Stocks-Markets-Economic Times
