Kotak Mahindra Bank’s share price was crashing on Thursday, going down over 4% to hit an intraday low of ₹1,552.40.

What Happened: KVS Manian, who was recently promoted as joint managing director, resigned from his position with immediate effect on Tuesday. Media reports suggest that he might be joining Federal Bank and could potentially become the new MD & CEO after the current incumbent’s term ends in September. Manian had been with the private lender for around three decades.

Analyst Reactions: Global research firm Jefferies maintained its “hold” rating on the stock with a price target of ₹1,970 per share. Jefferies emphasized the importance of monitoring any additional senior and mid-management departures from the lender, as such exits could compound the impact of RBI restrictions and potentially affect the bank’s growth and valuations.

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Macquarie maintained its “neutral” stance on the stock with a price target of ₹1,860. The brokerage firm said that uncertainty around the management continues to persist. The analysts also added that with the recent RBI action and this exit, the bank’s problems seem to be piling up.

On the other hand, Nuvama downgraded the stock to “reduce” from its previous “buy” rating and lowered its price target to ₹1,530 from ₹2,095. Nuvama cited a series of recent negative developments, including senior-level exits over the past six months, as factors that could adversely impact the lender’s growth and profitability over the next 12-18 months.

Investec, on the other hand, maintained its “buy” rating for the stock with a price target of ₹2,300. The brokerage firm said that noise will eventually fade away and the returns will be driven by fundamentals. The analysts added that the lender is positioned very well in terms of liabilities, asset mix and profitability.

Price Action: Kotak Bank’s share price was down 3.61% to trade at ₹1,565.25 in early trade on Thursday.

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