Stock Market Today: Kotak Mahindra Bank share price saw a steep fall of 10.85% to close at ₹1643 levels on the BSE on Thursday. The fall in Kotak Mahindra Bank share prices was led by Reserve Bank of India ban on Kotak Mahindra Bank’s digital onboarding and credit card issuance.
The sharp decline in Kotak Mahindra Bank share price meant that its market capitalization fell by similar amount leaving shareholders bearer by ₹39,768.36 crore.
The Kotak Mahindra Bank market capitalisation that stood at ₹3,66,383.76 crore at the end on Wednesday fell to 3,26,615.40 Crore by the end of Thursday.
As Uday Kotak, as non-executive director from 1st January 2024, holds 25.71% stake in Kotak Mahindra Bank, Uday Kotak also lost around ₹10,225 crore of wealth.
Among other shareholders, mutual funds hold around 12.82% stake in Kotak Mahindra Bank. Sharp decline in Kotak Mahindra Bank Share prices means that mutual funds also are likely to have lost more than ₹5000 Crore ( ₹5098 Crore).
Insurance companies hold 8.69% stake with Life Insurance Corporation of India itself holding 6.46% stake in Kotak Mahindra Bank. Hence decline in Kotak Mahindra Bank Share price means that while Insurance companies have lost ₹3456 Crore, Life Insurance Corporation of India has also lost ₹2569 crore with correction in Kotak Mahindra Bank Share price
Since the ban on Kotak Mahindra Bank entails a ban on onboarding new customers via any and all online channels, it implies that It would any online banking products offered to prospective new bank customers will be discontinued until the ban is lifted, said experts.
(More to Come)
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Published: 25 Apr 2024, 04:40 PM IST