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

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₹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.

Read here: Kotak Mahindra Bank's joint MD Manian steps down after 29-year stint 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. We learn from senior bankers the ban shall put the bank one–two years behind aggressive peers," Nuvama Equities said.

Many banks have acted on RBI nudges in Q4. While some may have been asked to, Nuvama believes some like ICICI Bank voluntarily improved LDR, LCR and slowed unsecured loans. Pat from catering to industry-wide nudges, Kotak shall also have to invest in stronger technology and monitoring systems.

"This could slow growth and increase opex but it is difficult to quantify the exact impact," Nuvama added. Also Read: Behind KVS Manian's sudden exit from Kotak Mahindra Bank The brokerage sees the ban lasting for at least a year. While the bank may post an earnings beat in line with peers in Q4, given an uncertain 12–18 months it does not see this as a trigger.

Nuvama cuts multiple sharply to 1.7x BV FY26 from 2.3x and values the subsidiaries at ₹560. Its multiple is pegged at a 10% discount to Axis Bank. While the stock has already corrected sharply, the brokerage firm expects it to underperform peers going ahead.