Kotak Mahindra Bank drops after naming outsider as new CEO

Shares of Kotak Mahindra Bank dropped over 2% after the appointment of Ashok Vaswani as CEO following founder Uday Kotak’s resignation. Analysts were surprised by the appointment as they had expected an insider to take over the role. Jefferies downgraded the stock and cut the target price, citing concerns about potential senior management attrition and business disruption. Additionally, the bank may face leadership transition issues in the future due to the RBI’s age cap for CEOs.