Kotak Mahindra Bank shares crash 10% after RBI crackdown
The RBI ban is not just sentimentally negative for the company in the short to medium term but is also seen as impacting growth, net interest margins (NIMs) and fee income.
Shares of private sector lender today fell up to 10% to Rs 1,659 on BSE as investors dumped the bluechip Nifty stock following RBI's temporary pause on onboarding of new customers through online and mobile banking channels and issuance of fresh credit cards.The RBI ban is not just sentimentally negative for the company in the short to medium term but is also seen as impacting growth, net interest margins (NIMs) and fee income.
Brokerages have started reducing their target prices on the stock saying that given the bank's high reliance on online channels for new retail customer acquisition, the RBI action may severly hinder its ability to cross-sell products.
Global brokerage Jefferies, which has a 'hold' rating on Kotak, lowered its target price to Rs 1,970 from Rs 2,050 while Emkay Global also reduced its target from Rs 1,950 to Rs 1,750.
Macquarie, which has chosen not to tweak its targets, admitted that the regulator's action is a "significant setback".
More to come...
Source: Stocks-Markets-Economic Times
