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Kotak Mahindra Bank Ltd.’s shares were down by 0.07 per cent after the company announced, Uday Kotak, the Managing Director and CEO of Kotak Mahindra Bank (KMB), has resigned from his role and will now serve as a non-executive, non-independent director of the bank for a period of five years.
According to a report by ICICI Securities, as per RBI norms, the maximum permissible tenure for MD, CEO, and whole-time directors ends on December 31, 2023, for both Kotak and Dipak Gupta. To ensure a smooth transition and stability, Mr. Kotak decided to step down early. The bank has already submitted an application to the RBI for approval of the new MD and CEO and is awaiting a decision from the central bank.
This change in leadership has prompted ICICI Securities to maintain a HOLD recommendation on KMB shares with a revised target price of ₹1,850 (previously RS 2,000). The stock is valued at approximately 2.6x FY25E core banking book.
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