Kotak Mahindra's Shares Fall After Ban On Cards And New Online Clients
NDTV
The lender's shares tumbled as much as 13% on Thursday after it was barred from adding new customers through its digital channels and from issuing fresh credit cards.
Uday Kotak built his Kotak Mahindra Bank Ltd. over decades to become Asia's richest banker. After India's regulator slapped his bank with a surprise ban, he's facing one of his biggest tests yet - and a dip in wealth.
The lender's shares tumbled as much as 13% on Thursday after it was barred from adding new customers through its digital channels and from issuing fresh credit cards. As the largest shareholder with a stake of almost 26%, the billionaire founder bore the heaviest brunt from the selldown, the most in four years.
That saw his wealth decline by $1.3 billion, according to the Bloomberg Billionaires Index. He was worth $14.4 billion as of April 24.
Rival Axis Bank Ltd. overtook Kotak's market capitalization for the first time since Sept. 2016. Axis' shares had surged after its earnings beat analysts' estimates.
