Kotak Mahindra Bank - Uday Kotak Steps Down As MD, CEO; Dipak Gupta Takes Interim Charge: ICICI Securities

ICICI Securities Report

As per the meeting held on September 2023, the board of Kotak Mahindra Bank Ltd. has informed that Mr. Uday Kotak has resigned as the Managing Director and Chief Executive Officer of the bank and has become a non-executive non-independent director of the bank for a period of five years.

He would not be liable to retire by rotation. Mr. Dipak Gupta (joint MD) would carry out MD and CEO responsibilities in the interim, subject to regulatory and other approvals.

The key monitorable for the stock would be the candidature and transition of the new MD and CEO.

We maintain 'Hold' on Kotak Mahindra Bank with a revised target price of Rs 1,850 (earlier: Rs 2,000) valuing the stock at ~2.6 times FY25E core banking book (earlier: ~2.8 times).

Upside risk is in growth exceeding expectations and downside risk is in less than smooth management transition.

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