Kotak Mahindra Bank stock falls 2% as CEO succession weighs; brokerages bullish on long-term outlook- Grow Mudra

Kotak Mahindra Bank stock falls 2% as CEO succession weighs; brokerages bullish on long-term outlook

29 Jun , 2026 By : Debdeep Gupta

Shares of Kotak Mahindra Bank Ltd fell more than 2 percent in early trade on June 29 after the lender announced that Managing Director and Chief Executive Officer Ashok Vaswani will not seek reappointment when his current term ends on December 31, 2026, triggering investor concerns over the bank's leadership transition.

The stock declined as much as 2.2 percent to Rs 400.1, making it the top loser on the Nifty 50 in early trade. The stock had gained nearly 1 percent in the previous session and is broadly flat over the past year, compared with a 5.7 percent decline in the Nifty 50.

However, brokerages maintained a constructive stance on Kotak Mahindra Bank stock, arguing that the leadership transition is unlikely to alter the bank's long-term strategy.

Nomura maintained its "Buy" rating on the stock with a target price of Rs 460 per share, implying an upside of more than 12 percent from the previous close. The brokerage said that Vaswani will not seek reappointment after December 2026, adding that the board has already started the CEO succession process. It said Anup Kumar Saha appears to be the strongest internal candidate for the role, and added that the CEO transition is unlikely to change the bank's strategy.

Jefferies also reiterated its "Buy" rating with a target price of Rs 450 per share. The brokerage said Vaswani's planned exit surprised investors and noted that the bank's senior management has changed since Uday Kotak's exit. It added that while the succession process may create a near-term overhang on the stock, leadership quality will be key for the bank's growth and re-rating.

Kotak Mahindra Bank informed the exchanges that Vaswani does not wish to seek reappointment upon the completion of his current term on December 31, 2026. The board has initiated the process for appointing a new Managing Director and CEO. Vaswani, who has more than three decades of experience in global banking, took over as the bank's Managing Director and CEO after Uday Kotak stepped down from the role in 2023.