Kotak Mahindra Bank news update
Kotak Mahindra Bank saw its share price plummet by 10% during early trading on Thursday following punitive measures by the Reserve Bank of India (RBI). The bank‘s shares dipped by up to 10.03% to ₹1,658.75 each on the BSE.
On Wednesday, the RBI instructed Kotak Mahindra Bank to halt the process of acquiring new customers via its online and mobile banking platforms and to stop issuing new credit cards with immediate effect. The central bank has prohibited the private sector bank from issuing new cards due to deficiencies in its IT system identified in both 2022 and 2023.
Kotak Mahindra Bank is confident that these directives will not significantly affect its overall operations.
In a stock exchange filing, the bank stated, “The Bank has implemented tangible measures to embrace new technologies and bolster its IT infrastructure. It remains committed to collaborating with the RBI to promptly address any outstanding concerns. Moreover, the Bank reassures its current customers of continued uninterrupted services, encompassing credit card facilities, as well as mobile and internet banking.”
