Kotak Mahindra Bank share price falls over 4% after KVS Manian resigns; Nuvama downgrades stock, cuts target

Kotak Mahindra Bank share price declined over 4% on Thursday after its joint managing director KVS Manian resigned with immediate effect. Kotak Mahindra Bank dropped shares as much as 4.38% to ₹1,552.55 apiece on the BSE.

KVS Manian was recently promoted to the role of Joint MD of Kotak Mahindra Bank and has resigned after 29 years of service.

Analysts believe losing a long standing key managerial personal (KMP) is a negative amid many exits in the last one year and on the back of RBI’s recent ban on Kotak Bank.

Nuvama Institutional Equities downgraded Kotak Mahindra Bank to ‘Reduce’ from ‘Buy’ and cut Kotak Mahindra Bank share price target to ₹1,530 from ₹2,095 earlier.

“We believe recent negative events and high attrition make the outlook for Kotak unpredictable,” Nuvama Equities said.

While the stock has already corrected sharply, the brokerage firm expects it to underperform peers going ahead. It recommends switching to ICICI Bank, Axis Bank, IndusInd Bank, HDFC Bank for a 1 year-plus horizon, and a few select NBFCs including Shriram Finance.

At 10:05 am, Kotak Mahindra Bank shares were trading 3.70% lower at ₹1,563.75 apiece on the BSE.

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