Kotak Mahindra Bank share price in focus as Uday Kotak resigns; here’s what brokerages have to say on top banker's exit

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₹1,789.05 apiece on the BSE. On 1 September, Kotak announced to step down as managing director and chief executive officer of the bank and the baton was passed to Dipak Gupta, the Joint Managing Director at Kotak Mahindra Bank. Gupta will carry out the duties of the MD and CEO until 31 December, which is subject to the approval of the RBI and the members of the bank.

Also Read: Uday Kotak passes baton of Kotak Mahindra Bank to Dipak Gupta, top things to know Kotak, a founding member of the bank, has been part of the institution for the past 38 years. Under Kotak’s leadership, the bank has become the fourth-largest private bank and has established a prominent presence across the financial services spectrum, including asset management, broking, investment banking, life insurance, etc. Analysts believe a smooth takeover under the new leadership would be a key aspect to watch out for.

Also Read: Exploring the evolution of Kotak Mahindra Bank as Uday Kotak resigns The bank has already submitted two names for the CEO role to the RBI and is waiting for the regulator’s approval. As per media reports, two senior management team members and whole-time directors, KVS Manian and Shanti Ekambaram, are the contenders for the top job. Brokerage firm Motilal Oswal Financial Services noted that Kotak Mahindra Bank delivered steady performance over the years, with its RoE gradually improving to over 14%.

“The bank has delivered robust traction in loan growth over FY21-23 at a ~19% CAGR and we estimate the bank to sustain a 17-18% CAGR over FY23-25E. Asset quality remains steady, and the strong CASA ratio will limit pressure on margins and enable a ~15% PAT CAGR over FY23- 25E," the brokerage said in a report. It retained ‘Neutral’ rating