Kotak Mahindra Bank's shares rise nearly 5%, touch 41-month high

Private sector lender Kotak Mahindra Bank’s shares surged 4.86 per cent on the National Stock Exchange (NSE) on Monday, reaching a 41-month high, following the appointment of Bhavnish Lathia as its chief technology officer (CTO).

 

The post had been vacant since February 15, when Milind Nagnur resigned his posts as chief operating officer and CTO.

 

The bank’s shares touched an intra-day high of ₹2,184.25 before closing at ₹2,180 on the NSE, levels higher than ones last seen on October 28, 2021. Kotak Mahindra Bank’s shares have surged nearly 22 per cent since the beginning of the year.

 

Lathia’s appointment is part of Kotak’s strategic efforts to strengthen its leadership and drive growth through innovation, the bank said in a statement. “His (Lathia’s) leadership will be crucial in ensuring that Kotak remains at the forefront of technological advancements in the banking sector,” it added. 

 

Last month, the Reserve Bank of India, lifted restrictions imposed on the lender on issuing new credit cards and on-boarding customers digitally. The restrictions, which were imposed due to gaps in information technology infrastructure, were in place for 10 months.

 

The bank recently appointed Vyomesh Kapasi, head of products in the consumer banking division since February, as a member of the group management council and a senior management personnel of the bank.

 

Meanwhile, the Nifty Bank Index — a gauge tracking bank stocks — was up 2.2 per cent on Monday.

 

Kotak Mahindra Bank was the top gainer in the NSE Nifty Bank Index, followed by Canara Bank (4.95 per cent), Federal Bank (4.29 per cent), Bank of Baroda (3.83 per cent), and State Bank of India (3.69 per cent), among others.

 

IndusInd Bank’s shares, which tanked 2.79 per cent on Monday, were the only losers in the Nifty Bank Index.

 

(Disclaimer: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd)