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Home » Business » Uday Kotak Loses $1.3 Billion Following RBI’s Order on Kotak Mahindra Bank

Uday Kotak Loses $1.3 Billion Following RBI’s Order on Kotak Mahindra Bank

Kotak Mahindra Bank's shares fell as much as 13% after the Reserve Bank of India barred it from adding new customers through its digital channels

By Newsd
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Uday Kotak Loses $1.3 Billion Following RBI Order

Uday Kotak Loses $1.3 Billion Following RBI Order: Kotak Mahindra Bank’s shares fell as much as 13% after the Reserve Bank of India barred it from adding new customers through its digital channels and from issuing new credit cards.

In the aftermath of the crash in shares, Uday Kotak, with a stake of almost 26%, bore the brunt.

Bloomberg Billionaires Index shows Asia’s richest banker and billionaire founder’s wealth decreased by $1.3 billion. He was worth $14.4 billion as of April 24.

Additionally, Axis Bank Ltd. overtook Kotak Mahindra Bank’s market capitalization for the first time since September 2016.

In addition, the former’s shares surged after it beat analysts’ estimates.

What did the RBI say about the ban on Kotak Mahindra Bank?

The Reserve Bank of India banned Kotak Mahindra Bank’s technology systems because of governance and risk issues.

According to the central bank, it discovered deficiencies and non-compliance in various processes over the past two years, from data security and leak prevention to vendor risk management.

According to the bank, it has adopted new technologies to strengthen its IT systems, and it is working with RBI to resolve balance issues as quickly as possible.

Ashok Vaswani is the new Chief Executive Officer at Kotak Mahindra Bank. The RBI ban poses a major challenge for him.

According to Bloomberg, Ashutosh Mishra, a banking analyst at Ashika, “The ban on online customer acquisition will have a negative impact on Kotak Mahindra Bank’s growth, as it is one of the slowest lenders to expand its physical branches.”.

There will be a negative sentiment towards the bank as a result of the RBI ruling.”

Also Read: Why is Tesla Stock Collapsing? Unraveling the Reasons Behind the Fall of the Company’s Shares

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