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Kotak Mahindra Bank’s share price fell by 10% today after the Reserve Bank of India (RBI) restricted the bank from onboarding new customers digitally and issuing new credit cards. The stock price dropped to Rs 1,659 on the Bombay Stock Exchange (BSE) as investors reacted to the news.
Analysts believe this move by RBI could hurt Kotak Mahindra Bank’s growth in the short term. The bank’s heavy reliance on online channels for customer acquisition may be hampered. Brokerages have begun adjusting their target prices for the stock, considering the challenges the bank may face.
While the long-term impact remains unclear. Analysts predict Kotak Mahindra Bank may miss out on acquiring new customers and miss opportunities to grow its credit card business.
Also read – RBI Tightens Oversight of Online Payments
