Kotak Mahindra Bank shares traded flat on May 13, after 39 mutual funds bought shares in the Bank, worth over Rs 8,100 crore, which helped increase the bank’s total shares from 25.63 crore to 30.24 crore in April 2024.

Earlier in April 2024, Kotak Mahindra Bank experienced a significant sell-off caused by the Reserve Bank of India’s ban on new customers using the bank’s online and mobile banking services, and the suspension of new credit card issuance. 

These funds bought around 4.62 crore shares in April, adding to the over 96 lakh shares they purchased in the previous quarter. 

It marked the ninth consecutive month of mutual fund buying activity in Kotak Mahindra Bank.

On April 29th, the RBI’s ban on Kotak Mahindra Bank acquiring new customers led to a drastic 11% decline in the bank’s stock, wiping out over Rs 40,000 crore in market capitalisation in a single day. 

By April 2024, 39 mutual funds collectively held around 30.24 crore shares of Kotak Mahindra Bank, worth Rs 53,186 crore, up from Rs 41,663 crore in March. Among these funds, 29 increased their holdings, nine reduced their stakes, and one maintained its holding at Rs 24.5 crore.

Despite the RBI restrictions, several brokerages maintained their ratings and targets for Kotak Mahindra Bank, anticipating a limited impact.

The RBI banned new customer onboarding and credit card issuance by Kotak Mahindra Bank due to IT issues, mandating an external audit. Kotak Bank’s credit card business accounts for 4% of loans.

Apart from Kotak Mahindra Bank, mutual funds also bought shares worth Rs 3,243 crore, Rs 3,113 crore, Rs 2,597 crore, Rs 2,110 crore, Rs 1,950 crore, and Rs 1,716 crore in Vodafone Idea, Axis Bank, Reliance Industries Ltd, Infosys, HUL, and HDFC Bank, respectively.

State Bank of India led in selling, with mutual funds withdrawing Rs 1,666.94 crore, followed by Bajaj Finance, which divested around Rs 1,166 crore, and L&T, which offloaded around Rs 979 crore. 

Other stocks that witnessed selling include Mahindra & Mahindra, Divi’s Lab, Interglobe Aviation, ICICI Bank, and Nestle India, with mutual fund sales ranging between Rs 550-850 crore.

At  2:39 pm, the shares of Kotak Mahindra Bank were trading flat on NSE.