Despite facing regulatory challenges in April 2024, Kotak Mahindra Bank (KMB) saw positive signs from mutual funds (MFs), which collectively purchased shares worth ₹8,100 crore. This strong buying activity helped increase the bank’s total shares from 25.63 crore to 30.24 crore in April.
Key Takeaways
- Mutual Funds Increased Stake in Kotak Mahindra Bank: A total of 39 MFs purchased Kotak Mahindra Bank shares in April 2024. This marks the ninth consecutive month of buying activity by MFs in the bank.
- SBI Mutual Fund Emerged as the Top Buyer: SBI Mutual Fund was the leading buyer of Kotak Mahindra Bank shares in April, acquiring 9.24 crore shares valued at ₹1,718.2 crore. HDFC Mutual Fund came in second with a purchase of 3.70 crore shares for ₹1,644.67 crore.
- Other Prominent Buyers: Other prominent mutual funds that increased their stake in Kotak Mahindra Bank include Quant Mutual Fund, ICICI Prudential Mutual Fund, Mirae Asset Mutual Fund, and Kotak Mahindra Mutual Fund.
Positive Sign Despite Regulatory Hurdles
The strong buying activity by MFs is a positive sign for Kotak Mahindra Bank, especially considering the regulatory challenges the bank faced in April. The Reserve Bank of India (RBI) had imposed a ban on Kotak Mahindra Bank from onboarding new customers through online and mobile banking channels. The bank was also barred from issuing new credit cards.
Analysts Remain Bullish on Kotak Mahindra Bank
Despite the short-term headwinds, analysts remain bullish on Kotak Mahindra Bank’s long-term prospects. The bank’s strong fundamentals, healthy financials, and dominant position in the retail banking segment are positive factors that continue to attract investors.
Conclusion
The significant buying activity by mutual funds in April 2024 demonstrates their confidence in Kotak Mahindra Bank’s future prospects. While the regulatory hurdles pose a temporary challenge, the bank’s strong fundamentals and long-term growth potential are likely to continue attracting investors.
