Shares of Kotak Mahindra Bank on Thursday tanked 13 per cent after the RBI barred the firm from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards with immediate effect.
The stock plunged 12.10 per cent to its 52-week low of Rs 1,620 on the BSE.
At the NSE, it tumbled 13 per cent to the 52-week low of Rs 1,602.
The company’s market capitalisation (mcap) eroded by Rs 37,720.8 crore to Rs 3,28,662.96 crore.
The stock emerged as the biggest laggard on both the BSE Sensex and NSE Nifty.
Cracking down on repeated non-compliance of IT norms, the RBI on Wednesday barred Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards with immediate effect after the regulator found “serious deficiencies” in the lender’s IT risk management.
These actions, the RBI said, are necessitated based on significant concerns arising out of Reserve Bank’s IT examination of the bank for the years 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner.