Uday Kotak Networth: Shares of Kotak Mahindra Bank saw a steep fall of around 12 percent on Thursday, April 25, 2024, following the Reserve Bank of India’s action. Institutional and retail shareholders investing in Kotak Mahindra Bank have suffered huge losses.
Uday Kotak Networth:
Shares of Kotak Mahindra Bank on Thursday April 25, 2024 saw a sharp fall of around 12 percent following the Reserve Bank of India action. Institutional and retail shareholders investing in Kotak Mahindra Bank have suffered huge losses.
But Uday Kotak, founder and non-executive director of Kotak Mahindra Bank, has been the biggest loser. Due to fall in Kotak Bank shares, Uday Kotak has lost Rs 10,225 crore.
Uday Kotak has 25.71 percent stake in Kotak Mahindra Bank. Yesterday, the stock closed at Rs 1,643, down around 10.85 per cent. Being the largest shareholder of Kotak Bank, Uday Kotak has suffered huge losses. Kotak Mahindra Bank’s market cap on April 24, 2024 was Rs 3,66,383 crore, it has come to Rs 326,615 crore on Thursday.
That is, the market cap fell by Rs 39,768 crore in a single session. The fall in the stock reduced the market value of Uday Kotak’s shareholding by Rs 10,225 crore. Due to the fall in Kotak Mahindra Bank shares, mutual funds and insurance companies that are shareholders of the bank have also suffered losses.
RBI’s action added to the problems
This fall in the stock of Kotak Mahindra Bank is due to the big action of the RBI. RBI has banned banks from creating new credit card customers through online or mobile banking. The company’s stock fell 12 percent to Rs 1,620 yesterday on the news.
🚨JUST IN: RBI bars Kotak Mahindra Bank from onboarding new customers via mobile and online channels, issue fresh credit cards
The Reserve Bank of India has today, in exercise of its powers under Section 35A
of the Banking Regulation Act, 1949, directed Kotak Mahindra Bank… pic.twitter.com/Lz3ROYWPL6— Chandra R. Srikanth (@chandrarsrikant) April 24, 2024
After this RBI action, many brokerage houses have reduced the target price of the bank’s stock. Hence, in terms of market cap, Axis Bank has overtaken Kotak Bank to become the fourth largest bank in the country.
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