look news india
Mumbai: The Reserve Bank of India yesterday banned Kotak Mahindra Bank from issuing new credit cards or taking customers online with immediate effect, reducing the wealth of the bank's founder and Asia's richest banker Uday Kotak by $1.3 billion overnight. Share price of Kotak Mahindra Bank today fell by Rs 200.05 or 10.85 percent to Rs 1643.
Shares of Kotak Mahindra Bank today fell by Rs 200.05 to Rs 1643, i.e. with a decline of 10.85 percent, Uday Kotak's stake in the bank has reduced by about $ 1.3 billion. According to Bloomberg Billionaires Index, Uday Kotak's wealth has declined from $ 1.3 billion on April 24 to $ 14.4 billion now. Along with this, due to the increase in stock prices due to the good performance of Axis Bank, Axis Bank has now overtaken Kotak Mahindra Bank in terms of market cap. The market capitalization of Kotak Mahindra Bank today fell to Rs 3,26,615.40 crore. At the same time, the market capitalization of Axis Bank has increased to Rs 3,48,014.45 crore.
Notably, the Reserve Bank of India yesterday took restrictive measures on Kotak Mahindra Bank over significant governance issues and deficiencies in the bank's technology system. The RBI had found shortcomings in various processes at Kotak Bank over the past two years, from data security and leak prevention strategies to vendor risk management.
Meanwhile, Kotak, in response to RBI's moves, said the bank will adopt new technologies to strengthen its IT systems and will continue to work with the RBI to resolve remaining issues.
This is not Uday Kotak's first encounter with the banking regulator. The billionaire banker had earlier challenged the Reserve Bank of India in court over the size of his stake in the bank. However, the controversy was eventually quelled after Kotak agreed to reduce its ownership stake in 2020. Along with this, Ashok Vaswani was appointed as the new Chief Executive Officer of Kotak Mahindra Bank.
Let us tell you here that in the year 1985, Uday Kotak had established an investment company in partnership with Mahindra by taking a loan of only Rs 30 lakh from family and friends.