Kotak Mahindra Bank Stock Saw Tsunami After RBI Action Axis Bank Takes Position Of 4th Largest Bank From it

Kotak Mahindra Bank Stock Crash: After the major action taken by the banking sector regulator Reserve Bank of India against Kotak Mahindra Bank on Wednesday 24 April 2024, the date of Thursday 25 April has been the most disappointing for the shareholders of Kotak Mahindra Bank. At market close, Kotak Bank shares closed at Rs 1643 with a decline of 10.85 per cent.

Kotak Bank stock fell by 12%

The stock had fallen in the pre-market in the morning and when the market opened, the stock opened at Rs 1675, a fall of Rs 168 from the previous closing price of Rs 1843, i.e. more than 9 percent. During the day's trading, it fell by more than 12 percent and reached Rs 1620. This is the lowest level of Kotak Mahindra Bank stock in the last one year. After this fall in the stock, the market cap of Kotak Mahindra Bank has come down to Rs 3.27 lakh crore.

Brokerage houses reduced the target

Due to this action of RBI, brokerage houses have reduced the target price of Kotak Mahindra Bank stock. Jefferies has reduced the target price of investors from Rs 2050 to Rs 1970 and advised investors to hold the stock. MK Global has reduced the target price of the stock from Rs 1950 to Rs 1750. Stating the target price of the stock at Rs 2040 with a neutral stance, Citi said that due to the action of RBI, the bank's growth, net interest margin and income from fees will be affected.

Axis Bank left behind

After the stock wash of Kotak Mahindra Bank, Axis Bank has overtaken Kotak Bank to become the fourth largest bank in the country in terms of market cap. The market cap of Axis Bank stood at Rs 3,48,014 crore while the market cap of Kotak Mahindra Bank stood at Rs 326,615 crore at market close.

Big action by RBI

Taking major action on Wednesday, RBI banned Kotak Mahindra Bank from adding new credit card customers as well as adding new customers through online or mobile banking channels. RBI said that during the IT testing for 2022 and 2023, many types of deficiencies were found in the bank. Kotak Mahindra Bank had failed to resolve these concerns within the stipulated time. In the same month, on April 15, 2024, the bank's services were halted, after which RBI had to take this action.

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