Kotak Mahindra Bank Hammered

KOTAKBANK shares have tumbled after RBI banned the private lender from taking on new clients digitally, due to IT-related deficiencies, raising concerns about the potential impact on the lender that relies heavily on online banking.

The current levels may act as a support but this firm stance by RBI is in line with the recent past actions on various other companies as well. This sector has the maximum headwinds currently and one should be careful of investing in these companies specially when opportunities elsewhere exist.

However, long term investors can start to accumulate this share if they want to have Kotak Mahindra Bank in their portfolio.