Kotak Mahindra Bank shares decline nearly 3%; mcap erodes Rs 9,532 cr

New Delhi: Shares of Kotak Mahindra Bank on Thursday ended nearly 3 per cent lower after the company announced that its Joint Managing Director K V S Manian has stepped down with immediate effect.

The lender's stock declined 2.95 per cent to settle at Rs 1,575.80 on the BSE.

During the day, it tanked 4.38 per cent to hit a 52-week low of Rs 1,552.55.

At the NSE, it dipped 2.82 per cent to finish at Rs 1,578. During the day, shares of the company went lower by 4.40 per cent to Rs 1,552.40 -- to hit a 52-week low.

The company's market capitalisation (mcap) eroded by Rs 9,532.07 crore to Rs 3,13,256.58 crore.

It emerged as the biggest laggard among BSE Sensex and NSE Nifty firms.

In traded volume terms, 105.26 lakh shares of the company were traded at the BSE and 266.40 lakh shares at the NSE during the day.

Manian, who had been with the lender for nearly three decades, was elevated in a management rejig in January.

The surprising news of the departure came days after the Reserve Bank of India (RBI) put severe business restrictions on the lender, including stopping it from selling new credit cards for shortcomings in its tech architecture.

A statement from the bank on Tuesday said Manian, who has led various businesses, including consumer, commercial, wholesale and private banking, has stepped down from his position with immediate effect.

The bank's statement did not mention anything about Manian's future plans or the reasons for the immediate departure.

Kotak Mahindra Bank on Wednesday said the tenure of Chengalath Jayaram as non-executive director on the board of the bank has ended on April 30.