India's Kotak Mahindra Bank drops as CEO's planned exit fans uncertainty

Kotak Mahindra Bank

29/06/2026 05:04

** Shares of Kotak Mahindra Bank KTKM.NS drop 2.4% at 398.85 rupees
** Lender's CEO, MD Ashok Vaswani says he will not seek reappointment after his term ends on December 31
** Analysts say the departure introduces near-term uncertainty, even as the bank's underlying fundamentals remain intact
** Jefferies calls the move another "surprise" for investors and warns that a succession process that could take up to six months, including the evaluation of external candidates, may create an overhang on the stock
** Morgan Stanley says the development "creates some near-term uncertainty" but does not alter the lender's fundamentals
** Citi describes it as a "sentiment-driven uncertainty rather than a fundamental risk"
** YTD, stock down 9.5% vs banks index's .NSEBANK 2.6% drop and Nifty 50's .NSEI 7.9% drop


 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))