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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Even as the exercise to find a successor to Uday Kotak is on, questions remain on the role to be played by the founder in the country’s fourth largest private bank.
Editor's note: Kotak Mahindra Bank is at a crossroads. Its founder and CEO of 20 years, Uday Kotak, is stepping away from his executive role at the end of the year. But with no succession plan announcement yet, the question of who takes the helm at India’s fourth largest private sector bank remains up in the air. That uncertainty is playing out in the tepid performance of its shares. The Kotak Mahindra Bank stock, in the last year, has gained just 2% when shares of most of its peers as well as the Nifty Private Bank index have turned in double-digit growth. Also, the bank’s stock is trading at a discount—its price-to-earnings multiple stands at 26.06 as of Thursday, below the sector’s average of 26.30. “There has been an overhang on the bank’s stocks for one year due to succession planning. For now everyone is keenly watching it, as it would decide the direction the bank would be steered from here,” says the chief investment officer of a fund house, asking not to be named. Clearly, investors continue to wait for signals. …
Even as the exercise to find a successor to Uday Kotak is on, questions remain on the role to be played by the founder in the country’s fourth largest private bank.
Editor's note: Kotak Mahindra Bank is at a crossroads. Its founder and CEO of 20 years, Uday Kotak, is stepping away from his executive role at the end of the year. But with no succession plan announcement yet, the question of who takes the helm at India’s fourth largest private sector bank remains up in the air. That uncertainty is playing out in the tepid performance of its shares. The Kotak Mahindra Bank stock, in the last year, has gained just 2% when shares of most of its peers as well as the Nifty Private Bank index have turned in double-digit growth. Also, the bank’s stock is trading at a discount—its price-to-earnings multiple stands at 26.06 as of Thursday, below the sector’s average of 26.30. “There has been an overhang on the bank’s stocks for one year due to succession planning. For now everyone is keenly watching it, as it would decide the direction the bank would be steered from here,” says the chief investment officer of a fund house, asking not to be named. Clearly, investors continue to wait for signals. …
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
The retired banker wants India’s top companies to invest in AI. But the capital, ambition, and urgency simply aren’t there.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
The retired banker wants India’s top companies to invest in AI. But the capital, ambition, and urgency simply aren’t there.
High returns, RBI-regulated comfort, and easy withdrawals drew investors in. Now, with repayments drying up, the fintech platform, its NBFC partner, and the regulator are pointing fingers—leaving customers to chase their own money.
