Kotak Mahindra Bank’s share price went down nearly 4 percent in morning trading. This happened after the news that its joint managing director, KVS Manian, has resigned immediately.
At 10:40 am, the stock was trading 3.81% lower at ₹1,561.95 on the National Stock Exchange (NSE).
On the other hand, Federal Bank’s share price went up 4 percent higher. This is because there are rumors that the Kotak official who resigned may join Federal Bank as the managing director.
Brokerages have lowered their target price for Kotak Mahindra Bank after Manian’s sudden resignation. Manian worked at the private bank for 29 years.
The exit of Manian is considered a big negative for Kotak Mahindra Bank. It is vital to note that market speculation suggests that the opposite stock price reaction in the two banks may be driven by the stock movements because of the potential appointment of Manian.
