Kotak Mahindra Bank Share Price: reserve Bank of India (rbi) immediately banned Kotak Mahindra Bank from adding new customers through online and mobile banking and issuing credit cards due to repeated non-compliance of IT norms. The effect of the strictness of the apex bank is visible on the company’s stock prices. As soon as the market opened this morning, the company’s shares fell by 10 percent. At 10.30 am, the company’s shares were trading at 1,662.50, down 9.78 percent or 180.30 points. As soon as the market opened today, the bank’s stock fell 9.08 percent and opened at Rs 1675. However, within five minutes, it fell by 10 percent i.e. Rs 184 to Rs 1658.
How has the stock’s performance been?
On the third trading day of the week, the stock of Kotak Mahindra Bank closed with a rise. However, in the last five trading days the bank’s stock has given a negative return of 6.61 percent to the investors. Whereas, investors have suffered a loss of 5.28 percent in one month and 3.87 percent on six-monthly basis. Investors have suffered a loss of 12 percent on an annual basis. The market cap of the bank is Rs 3.30 lakh crore.
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What strict action has the Reserve Bank taken?
RBI said in a statement that these actions have been taken after finding ‘serious deficiencies’ in IT risk management and information security operations of Kotak Mahindra Bank. According to the statement, this step was necessitated by the significant concerns raised by the Bank’s Information Technology (IT) audit for the years 2022 and 2023 and the Bank’s continued failure to address these concerns in a timely and appropriate manner. Meanwhile, Kotak Mahindra Bank said in a statement that it has taken measures to adopt new technologies to strengthen its IT system. The bank said that it will continue to work with RBI for early resolution of the remaining issues. In December 2020, RBI had also banned HDFC Bank from issuing new cards and launching new digital initiatives after repeated technology glitches were reported. However, this ban was lifted in March 2022.