Tag: Kotak Mahindra Bank

JPMorgan Chase sheds market capitalisation equal to Kotak Mahindra Bank on weak earnings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of JPMorgan Chase, the biggest US bank by revenue and market capitalisation fell 6.5% on Friday after issuing a disappointing Net Interest Income guidance for 2024. This was the biggest single-day drop for the stock since June 11, 2020.

The 6.5% drop resulted in the lender shedding over $36 billion in its overall market capitalisation. As of Friday’s close, JPMorgan Chase had a market cap of $525 billion, down from the $561 billion it had on Thursday.

This $36 billion fall equals to nearly ₹3 lakh crore. This is almost equal to the entire market capitalisation of private lender Kotak Mahindra Bank Ltd. As of Friday’s close, the market capitalisation of Kotak Mahindra Bank stood at ₹3.6 lakh crore. It is also equivalent to stocks like Tata Motors, whose market capitalisation as of Friday, stood at ₹3.38 lakh crore.

Shares of JPMorgan Chase fell after it did not revise its Net Interest Income forecast higher for 2024, leaving it unchanged at $90 billion. Analysts and consensus estimates expected the lender to raise that forecast by $2 billion to $3 billion.

Trading revenue for the biggest US bank, even by assets fell 5% from the year ago period. However, both fixed income and equities segment topped analyst expectations by $100 million each.

JPMorgan’s guidance on net interest income “strikes us as ultra-conservative,” Piper Sandler analyst R Scott Siefers wrote in a note to clients. “The unchanged outlook will disappoint investors a bit and could weigh on the stock.” Still, it “now leaves room to be revised upward later.”

Besides JPMorgan, Wells Fargo also missed estimates on the Net Interest Income front, a sign that muted loan growth and the pressure to pay more for deposits are offsetting the benefits of higher rates.

(With Inputs From Agencies.)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak Mahindra Bank acquires 100% stake in Sonata Finance for ₹537 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Mahindra Bank on Thursday, March 28 acquired 100% stake in Sonata Finance Private Limited for a total consideration of around ₹537 crore.

The non-banking finance company and micro finance institution is registered with the RBI.

Sonata operates in 10 states across the country and has 549 branches. Its assets under management are pegged at around ₹2,620 crore as of December 31, 2023, Kotak Mahindra Bank said in a stock exchange filing.

With Thursday’s acquisition, the company has become a wholly-owned subsidiary of the lender.

Kotak Mahindra Bank shares were trading in the green for the second day on March 28, up 0.93% at ₹1,792.15 apiece at 12.55 pm. The stock ha sgained for six out of the last seven trade sessions. It has gained 6.47% in the past month.

Also Read: VIP Industries shares jump over 13% after management stresses on innovation, margin target

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Lombard acquires 0.7% stake of Kotak Mahindra Bank for ₹245 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Lombard General Insurance Company Ltd on Friday acquired a 0.7% stake in Kotak Mahindra Bank for ₹245 crore, the company informed in an exchange filing.

The company also informed the exchanges that it has allotted equity shares under ICICI Lombard Employees Stock Option Scheme-2005.

“The Company has allotted 26,270 (Twenty Six Thousand Two Hundred Seventy Only) Equity Shares of ₹ 10/- (Rupees Ten Only) each on March 1, 2024 to the eligible option holder(s) who had exercised the stock options under ICICI Lombard Employees Stock Option Scheme-2005.”

Earlier on February 29, ICICI Bank said it had bought an additional 25.14 lakh shares of ICICI Lombard General Insurance for ₹431 crore.

The move follows a May 2023 resolution by the bank’s board to increase the bank’s holding of ICICI Lombard by another 4% in multiple tranches.

ICICI Bank had also acquired a 1.65% stake (approximately 81 lakh shares) in ICICI Lombard General Insurance Company for ₹1,356 crore through block deals on February 27. Bharti Enterprises was identified as the seller in this transaction.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak Mahindra Bank launches ‘Smart Choice’ gold loans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Kotak Mahindra Bank Ltd has unveiled its latest offering, the Smart Choice Gold Loan, aimed at meeting the financial needs of aspirational consumers. This product comes with features including a fixed monthly interest rate starting from 0.88%, same-day disbursement, flexible repayment options, and minimal documentation requirements.

The launch of the Smart Choice Gold Loan comes at a time when the demand for gold-backed financing solutions is on the rise in India. According to a report by the World Gold Council, Indian households possess a staggering 27,000 tonnes of gold.

Additionally, recent data from CIBIL indicates that the gold loan industry has witnessed significant growth, with advances reaching ₹7.15 lakh crore as of December 2023, growing at a CAGR of 19% over the last three years.

Recognising the increasing popularity of gold loans, Kotak Mahindra Bank said it conducted extensive consumer research to develop a product that offers value and flexibility.

Unlike traditional credit products with strict eligibility criteria, gold loans provide a simpler application and disbursal process, leveraging gold as collateral to offer lower interest rates and significant savings over the loan tenure.

Shripad Jadhav, President of Retail Agriculture and Gold Loans at Kotak Mahindra Bank, said, “Gold loans are gaining traction as a cost-effective alternative to traditional credit products, bridging the gap between aspirations and reality. With features like easy accessibility, same-day processing, attractive pricing, and the security of gold jewellery, Kotak ‘Smart Choice’ Gold Loans aim to meet the evolving financial needs of consumers.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Gurugram | Three Kotak Mahindra Bank employees arrested for opening 2000 fraudulent accounts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Gurugram Police reported on Wednesday, February 28, that they have apprehended three manager-level employees of Kotak Mahindra Bank, along with an individual from Nuh, in connection with widespread bank fraud, as informed to CNBC-TV18.

The arrests follow an intensive investigation prompted by a customer complaint reporting a loss of ₹10,000.

On February 29, a Kotak Mahindra Bank spokesperson said: “Three employees are being investigated by the Cyber Crime Police Manesar, Gurugram based on a complaint filed by an individual for defrauding him. The police are investigating the complaint. Our commitment to security and compliance remains unwavering and we are cooperating with the authorities in the investigation.”

The bank further said those arrested have been identified as Mohit Rathi (25) from Haryana, Mahesh Kumar (27) from Gurugram, Uttar Pradesh native Vishwkarma Maurya (26), and Hayat (23) from Haryana’s Nuh. The three worked at the MG Road branch of Kotak Mahindra Bank in Gurugram where Rathi was an assistant manager while Kumar and Maurya were deputy managers.

The three bank employees, who had been with Kotak Mahindra Bank for the past year, stand accused of masterminding a sophisticated scheme involving the fraudulent opening of over 2,000 accounts.

Investigations have revealed that the trio allegedly provided complete banking kits for each illicitly opened account to a criminal gang operating in Nuh. This cybercriminal syndicate then exploited the accounts to siphon off and park money obtained through various fraudulent activities, deceiving unsuspecting individuals, the police informed.

Authorities suspect that the fraudulent account openings may extend beyond the currently identified 2,000 accounts.

Gurugram Police has asked Kotak Mahindra Bank for details of all accounts which have a lien against them or have been frozen by law enforcement agencies.

The fraudulent scheme involved the bank employees reaching out to individuals, either through communication or personal meetings, obtaining their personal details, and subsequently opening accounts without the victims’ knowledge.

Also read: ‘Enjoying life as a private citizen’ — Uday Kotak on retirement

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘Enjoying life as a private citizen’ — Uday Kotak on retirement

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Uday Kotak, who, nearly four decades ago, founded the Kotak Mahindra Bank, has been living a life of retirement since he stepped down as Chairman and Managing Director last September. In his own words, Kotak is enjoying the freedom of not being a regulated banker.

In a moment of candour during a panel discussion during the CNBC-TV18 EY Entrepreneur of the Year awards in Mumbai on Friday, February 23, Kotak said his surprise decision to step down after 39 years at the helm was informed by what, in his opinion, was best for the bank—the institution is bigger than the individual.

“The institution is more important than any individual—you (must) keep that compass in mind and focus on the institution and what’s right for the institution,” Kotak said when asked how hard it was for him to let go.

WHAT AN ENTREPRENEUR OF THE FUTURE REQUIRES @udaykotak lists out the top 3 human qualities

-Simplicity
-Prudence
-Humility @ShereenBhan#25EOYIndia #BuildersOfABetterIndia pic.twitter.com/02ATuOaYgC

— CNBC-TV18 (@CNBCTV18News) February 23, 2024

“Individuals come and go, but the institution must sustain and grow over a long period of time,” Kotak said, citing the example of JPMorgan Chase & Co— the world’s largest bank by market capitalisation.

“Look at the history of some of the biggest successes in the world—in the financial sector, JP Morgan. There was a Mr JP Morgan (who founded the institution in 1871) once upon a time. He’s dead and gone, (but) the institution JPMorgan has sustained—that was the key focus for me as an individual in the context of the institution.”

How has retirement treated Kotak in the past six months? It is a little-known fact that Kotak, who currently serves as the non-executive director of the bank, stopped sitting at Kotak Mahindra Bank’s office and moved to a different building the day after he resigned from his position. Was the move difficult?

“I can assure you, I’m enjoying the freedom of being a private citizen for a change rather than being a regulated person,” Kotak said to smiles and applause from his fellow panelists and guests present at the event.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zurich Insurance to acquire 70% stake in Kotak General for ₹5,560 crore in single tranche

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private sector lender Kotak Mahindra Bank on Friday (February 23) said Zurich Insurance Company Ltd will acquire a 70% stake in Kotak General for ₹5,560 crore in a single tranche.

“The Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately ₹5,560 crore, instead of the proposal announced in our earlier disclosure,” it said in a regulatory filing.

The other terms of the transaction remain unchanged, the company said.

The proposed 70% acquisition would be subject to fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI), Kotak Mahindra Bank said.

Earlier, in November 2023, Kotak Mahindra Bank had said Zurich Insurance Company will acquire a 51% stake in Kotak General Insurance for ₹4,051 crore and an additional stake of 19% in the general insurance company in three years.

Shares of Kotak Mahindra Bank ended at ₹1,724.80, down by ₹1.70, or 0.098%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Federal Bank shares drop 5% — This is why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Federal Bank Ltd. fell as much as 6% in opening trade on Tuesday after some top-level rejig that took place at its private peer Kotak Mahindra Bank on Monday evening.

Kotak Mahindra Bank informed the exchanges that KVS Manian, the current Whole-time director at the bank has been elevated to Joint Managing Director, while Shanti Ekambaram, who was also a Whole-time Director, has been elevated to Deputy MD of the bank.

The reason why Federal Bank is impacted due to these developments is that CNBC-TV18 had reported on February 15 citing sources, that the lender had shortlisted KVS Manian’s name as one of its potential MD & CEO candidates to be submitted to the Reserve Bank of India. The lender is expected to submit three names to the central bank.

This is part of the succession planning at the Kochi-based lender. Federal Bank’s current MD & CEO Shyam Srinivasan, who took over the reins in 2010, will see his term end on September 22 this year.

According to RBI guidelines, a CEO can stay with a bank for 15 years if they are not a promoter. Based on this, Srinivasan was eligible to stay on for another year at the bank, a request the RBI rejected.

Shares of Federal Bank are trading 4.9% lower at ₹155. The stock has risen 23% over the last 12 months.

(With Inputs From Abhishek Kothari & Sudarshan Kumar.)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Kotak Mahindra Bank shuffles senior management, re-designates KVS Manian as joint MD

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private sector lender Kotak Mahindra Bank Ltd on Monday (February 19) has announced key changes to its senior management team.

K.V.S. Manian, currently a whole-time director and a key managerial personnel, has been re-designated as the joint managing director of the bank, effective March 1, 2024. This move is subject to necessary approvals.

Additionally, Shanti Ekambaram, currently a whole-time director and a key managerial personnel, has been re-designated as the deputy managing director, effective March 1, 2024, also pending necessary approvals.

Devang Gheewalla has been appointed as the new chief financial officer. He has been designated as president and group chief financial officer, effective April 1, 2024.

This follows the superannuation of Jaimin Bhatt, who currently holds the position of group president and group chief financial officer, with his term ending on March 31, 2024.

Furthermore, Milind Nagnur, the bank’s current chief technology officer, has been appointed as the new chief operating officer of the bank, effective April 1, 2024.

Nagnur will be responsible for overseeing operations as well as the group technology architecture and cyber security while continuing in his role as the chief technology officer.

Finally, Paul Parambi, the current chief risk officer of the bank, has been appointed as the new group chief risk officer, effective March 1, 2024. Both Nagnur and Parambi have been recognised as senior management personnel of the bank.

Shares of Kotak Mahindra Bank Ltd ended at ₹1,731.50, down by ₹4.40, or 0.25%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow