RBI action on Kotak Bank: Stock plunges 12% as analysts turn bearish

RBI action on Kotak Mahindra Bank: With unsecured lending, especially credit cards, becoming key focus areas of most banks, Kotak Mahindra Bank will lose the opportunity to add the high-yield products

Kotak Bank News: The Reserve Bank of India's (RBI's) action against Kotak Mahindra Bank, directing it to stop onboarding new customers through its online and mobile banking channels will hit the bank's near-term growth, analysts said on Thursday.

The directive, they said, is sentimentally negative for the company in the short to medium term as, considering Kotak Mahindra Bank's high reliance on online channels for new retail customer acquisition, the RBI's action may severely hinder its ability to cross-sell products.

"We believe such restrictions should impact business growth, including Kotak Mahindra Bank's already dwindling current account-savings account (CASA)