Uday Kotak Exits, Dipak Gupta Takes Interim Role As MD & CEO; Should You Buy Kotak Bank's Share Price?

Private sector lender Kotak Mahindra Bank witnessed a volatile week due to major change in its leadership. Indian banker and Founder of Kotak Mahindra Bank, Uday Kotak has resigned from his position as MD and CEO starting September, while Dipak Gupta is appointed to take the role on an interim basis. In the trading week from September 4th to 8th, Kotak Bank shares surged by a little over half a percent. Is it the right time to invest in this private bank stock?

On BSE, Kotak Bank's share price closed at Rs 1793.05 apiece on Friday, marginally up from the previous session's print of Rs 1788.95 apiece. The bank's market cap is over Rs 3.56 lakh crore.

In the trading week that ended on September 8th, Kotak Bank's shares surged merely by Rs 11.05 or 0.62%. Year-to-date, the stock is down by nearly 2%.

Uday Kotak has ceased to be the Managing Director & CEO of the Bank, with effect from September 1, 2023 on account of his resignation considered at the bank's Board Meeting held today and has become a Non-Executive Director of the Bank.

Uday Kotak is the Founder and Promoter of the bank and has been the Managing Director & CEO of Kotak Mahindra Bank Limited (earlier known as Kotak Mahindra Finance Limited) since August 1, 2002. He has played an important role in the institution's growth over the past 38 years. Under Kotak's leadership, Kotak Mahindra group established a prominent presence in every area of financial services from stock broking, investment banking, car finance, life insurance and mutual funds.

With Uday's exit, Kotak Bank receives RBI's approval to appoint Dipak Gupta as the interim Managing Director & CEO for a period of two months effective from September 2, 2023.

Dipak Gupta has been a Whole-time Director of the bank since January 1999 and had been designated as the Joint Managing Director of the Bank, since January 1, 2012. He has over three decades of experience in the financial services sector, nearly two and half decades of which had been with the Kotak Group.

Should you buy Kotak bank's share price?

In her technical pick, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher on September 8, said, "The stock has maintained a strong base near the support zone of 1750 and has indicated a decent pullback to come out of the consolidation range and improve the bias to anticipate for further rise."

She added, "The RSI is on the rise and well placed indicating strength with further immense upside potential visible. With the chart looking attractive, we suggest to buy the stock for an upside positional target of Rs 1990 while keeping the stop loss near Rs 1720."

Disclaimer

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