Kotak Mahindra Bank’s share price rose 2.25% to an intra-day high of Rs 1,987.70 after the Reserve Bank of India lifted restrictions on the private lender, enabling it to onboard new customers via online channels.
The lender of last resort banned Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels and the issue of new credit cards.
“We now wish to inform you that, having satisfied itself of the remedial measures undertaken by the Bank to address the supervisory concerns, the submission of compliances made to the RBI (including the report of the external Auditor), the RBI has, vide its letter dated February 12, 2025, communicated its decision to the Bank (at 16:52 IST) to lift the aforementioned restrictions placed on the Bank. The Bank will follow the decision of the RBI, as communicated,” read an exchange filing on February 12.
ALSO READRBI removes supervisory restrictions on Kotak Mahindra Bank
Following the announcement, the brokerage firm Motilal Oswal Financial Services raised the target price on Kotak Mahindra Bank to Rs 2,200 while maintaining its ‘Buy’ call on it. The RBI’s decision underscores the remedial steps the bank took to fill the gaps. The lifting of the ban “also ratifies the bank’s resilience as well as the efficacy and strategic foresight of the new management team to deftly handle such a critical situation that posed grave concerns about the bank, right after several changes in the top leadership team,” said Motilal Oswal.
Kotak Mahindra’s Q3 earnings
The private lender reported a 10% growth YoY in its net profit at Rs 3,305 crore in Q3 FY25, compared to Rs 3,005 crore reported in the same period a year ago. The net interest income (NII) stood at Rs 13,427.58 crore for Q3 FY25, an increase of 14% YoY, as against Rs 11,799 crore in the corresponding quarter of the previous financial year.
Kotak Mahindra Bank Vs Nifty Bank
The share price of Kotak Mahindra Bank has risen 3.3% in the last five trading days. It has given a return of almost 14% in the previous one month and 13% in the past six months. The returns remained the same for the past one year.
Compared with the banking index,
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