Kotak Mahindra Bank's decision to elevate Anup Kumar Saha as managing director and chief executive is positive for the lender, with his experience expected to help its retail and digital businesses, according to Parag Thakkar, head and fund manager at Fort Capital. The private sector lender said on Thursday it had received Reserve Bank of India approval for the appointment.
Speaking on NDTV Profit's India Market Open, Thakkar said the appointment was expected and highlighted Saha's experience at ICICI Bank and Bajaj Finance. "It is a great choice and it was expected,” he said. "On retail, digital, he will be hands-on."
Thakkar said Kotak Mahindra Bank's valuations remained attractive despite the recent rise in its share price. He put the stock's price-to-book multiple at 1.5 times and the value of its subsidiaries at Rs 140 per share. "Valuations even after the recent run-up are very attractive,” he said.
Asked whether the appointment could lead to a rerating, Thakkar said the stock could open higher before giving up some gains, citing a "buy on rumour, sell on news" pattern in the market. "It might open gap-up and might slightly correct also but these are all short-term things,” he said. “Overall structurally one has to be positive on Kotak Mahindra Bank."
Thakkar indicated a potential share-price target of Rs 480–490, without specifying a timeframe.
Boosting deposits should be a priority for Saha, particularly current account and savings account deposits, or CASA, according to Thakkar. "Deposits have to be given a big boost,” he said, adding that the bank needed to work harder to attract CASA deposits.
Thakkar expects Kotak to retain its focus on margins while expanding its digital retail business and improving customer satisfaction. He said the lender's relatively small market share left room for growth.
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Kotak Mahindra Bank To Elevate Anup Kumar Saha As MD And CEO From Next Year
Private sector lender Kotak Mahindra Bank on Thursday said it has received RBI approval to elevate Anup Kumar Saha as its managing director and chief executive. Saha was appointed executive director earlier this year and has been handling the retail banking, data analytics and marketing functions. His appointment is for three years starting January 1, 2027.
He had a long stint with ICICI Bank and also worked with non-bank lender Bajaj Finance before joining Kotak Mahindra Bank. The elevation was necessitated by the decision of Ashok Vaswani, the incumbent MD and CEO, not to seek reappointment upon completion of his term.
Saha said Kotak has a strong franchise, a trusted brand and talented teams across the organisation. "I look forward to working with my colleagues to deepen customer relationships, tirelessly execute and build sustainable value for shareholders and all our stakeholders," Saha said.
The Kotak Mahindra Bank announcement closes one of the keenly watched leadership role appointments among private sector lenders. The country's largest private sector lender HDFC Bank is also in the midst of a leadership transition and has sent two names to the RBI.
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