Shares of Kotak Mahindra Bank crashed by as much as 12 per cent in morning trade on Thursday to Rs 1,620 on BSE as investors dumped the stock following the RBI crackdown on the lender.
The RBI had, on Wednesday evening, barred Kotak Mahindra Bank, with immediate effect, from taking on new customers and issuing fresh credit cards.
Infina Finance, one of the promoter group entities of Kotak Mahindra Bank had donated electoral bonds worth Rs 60 crore to the BJP. However, the RBI has taken stringent action against the bank to protect the interest of consumers.
The RBI order said business restrictions on Kotak Mahindra Bank have been imposed in the interest of customers as the Uday Kotak-controlled bank was assessed to be deficient in its IT Risk and Information Security Governance.
The RBI said that stringent action has been taken to protect consumers and to prevent any possible prolonged outage which may seriously impact not only the bank’s ability to render efficient customer service but also the financial ecosystem of digital banking and payment systems, according to the RBI order.
“In the absence of a robust IT infrastructure and IT Risk Management framework, the bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the recent one being a service disruption on April 15, 2024, resulting in serious customer inconveniences.
“The bank is found to be materially deficient in building necessary operational resilience on account of its failure to build IT systems and controls commensurate with its growth,” the RBI order states.
The RBI investigation into the operations of the bank revealed serious deficiencies and non-compliances in the areas of IT inventory management, patch and change management, user access management, vendor risk management, data security and data leak prevention strategy, business continuity as well as disaster recovery rigour and drill.
Adani Green reports 30 pc EBITDA growth in FY24, revises target to 50 GW for 2030
Adani Green Energy Ltd (AGEL) on Friday reported 30 per cent EBITDA growth at Rs 7,222 crore in FY24, as the renewable energy (RE) major revised its target for 2030 to 50 gigawatt (GW) from 45 GW.
Adani Group's Ambuja Cements clocks highest-ever PAT at Rs 4,738 crore in FY24
Ambuja Cements on Wednesday reported profit after tax (PAT) at Rs 4,738 crore for FY24 -- up by a record-setting 119 per cent (year-on-year) -- and operating EBITDA at Rs 6,400 crore, up by 73 per cent.
Govt cuts windfall tax on crude oil, ONGC, OIL India Ltd to gain
The Government has cut the windfall tax on crude oil to Rs 8,400 a metric ton from Rs 9,600 with effect from Wednesday as part of its fortnightly revision.
Adani Total Gas clocks 27 per cent EBITDA growth in FY24, overall volume up 15 per cent
Leading city gas distribution company Adani Total Gas Ltd (ATGL) on Tuesday announced EBITDA of Rs 1,150 crore in FY24 that surged by 27 per cent (year-on-year), with consolidated profit after tax (PAT) at Rs 668 crore which increased by 22 per cent as compared to last fiscal year.
Adani Ports & SEZ secures AAA rating - India’s 1st in private infra development space
Adani Ports and Special Economic Zone Limited (APSEZ), one of the largest profit contributors for the Adani Group, has been upgraded to AAA rating by Care Ratings.
India's gold demand rises 8 pc in Jan-March despite soaring prices
India's gold demand rose to 136.6 tons in the January-March quarter which represents an 8 per cent increase over the same quarter of the previous year, according to figures released by the World Gold Council (WGC) on Tuesday.
AdaniConneX establishes India's largest sustainability linked financing to raise up to $1.44 billion
In a bid to accelerate digital infrastructure growth in India, AdaniConneX, a JV between Adani Enterprises and EdgeConneX, on Sunday said it has established the country’s largest sustainability-linked financing to raise up to $1.44 billion.
DMs, SPs of violence-hit MP districts transferred
The farmers agitation entered its eighth day on Thursday. The peasants have been on strike since June 1, demanding loan waiver and fair price for their produce.