Brokerage firm Macquarie in its latest note on Kotak Mahindra Bank said that the RBI action directing the bank to stop issuing credit cards and onboarding customers via digital channels is a significant setback for the bank as a lot of savings accounts are opened via the 811 digital channel of the bank.
The brokerage firm has a Neutral call on Kotak Mahindra Bank stock with a target price of Rs 1,860 per share. It further stated in its note that ceasing on-boarding of new customers could affect business growth. Additionally, Kotak Mahindra Bank has also seemed reluctant in opening branches, with fewer than 350 branches opened in last 4 years, is also an issue. Overall it expects the ban to affect growth over the medium term.
Kotak Mahindra Bank shares hit a 10% lower circuit in trade today morning. As of 10:00 AM, the stock was down 9.93% or Rs 183.05 at Rs 1,659.75.