Kotak Mahindra Bank shares plunged over 3% to a low of Rs 395.95 on the NSE after it disclosed that MD & CEO Ashok Vaswani has informed the Board that he will not seek reappointment upon completion of his current term. Brokerages see Anup Kumar Saha as a perfect fit for leading the bank and a strong internal contender.
The Kotak Mahindra Board has acknowledged his decision and formally initiated the succession process, with completion expected within applicable regulatory timelines. No shortlist has been announced yet.
Jefferies on Kotak Mahindra Bank CEO’s exit
Since Uday Kotak surprisingly exited in September 2023, most of the top management has changed. Also, the stock has surged 11% over the last three years.
Jefferies sees Anup Kumar Saha (returned from Bajaj Finance as ED, heading consumer business) as a key internal contender, though a 6-month process including external candidates may create overhang. Succession quality & durability remain key to growth & rerating, said the brokerage.
Jefferies maintained its ‘Buy’ rating on the bank, but lower in the pecking order. The price target was retained at Rs 450, which sees an upside of over 10% from the closing price of June 25.
Nomura on Kotak Mahindra Bank
Vaswani took charge on January 01, 2024, succeeding founder Uday Kotak after over two decades of founder-led stewardship. Nomura said that his three-year term will thus translate to exactly one completed term, a notably short stint for a franchise of this scale.
Among the internal candidates, Anup Saha appears the strongest fit, the brokerage added. Appointed Whole-time Director in March 2026, he leads businesses that sit at the centre of Kotak’s long-term strategy, including consumer banking, marketing, and digital transformation.
His prior experience spans 14 years at ICICI Bank across retail banking and credit cards, followed by eight years at Bajaj Finance, where he eventually became MD & CEO. Saha combines deep consumer finance expertise with proven digital execution capabilities, making him well aligned with the Bank’s strategic priorities, added Nomura.
“Saha’s Whole Time Director appointment received RBI approval cleanly in March 2026, an important pre-validation signal. We believe a Board recommendation by September-October 2026 is plausible,” said Nomura.
If Saha is the internal choice, the succession path is already substantially de-risked. The risk event is an external hire, which may raise questions around the Board’s succession process and create near-term execution uncertainty. The brokerage said that the CEO transition is unlikely to alter the bank’s strategic direction.
However, the brokerage maintained its Buy rating on Kotak Mahindra Bank, while retaining the target price at Rs 460, implying an upside of 12.5% from the closing price of June 25.
Kotak Mahindra Bank share price performance
The share price of Kotak Mahindra Bank has fallen 0.31% in the last five trading days. The stock has given a return of 4.3% in the last one month. The stock has dropped 7.2% in the past six months. Kotak Mahindra Bank’s share price has declined 7.5% over the last 12 months.
