Shares of Kotak Mahindra Bank fell more than 3% on Monday after the private lender's Managing Director and CEO, Ashok Vaswani, decided not to seek reappointment after his current term expires at the end of the year, citing personal reasons. Brokerages Nomura and Jefferies, however, maintained their 'Buy' ratings on the stock.

In an exchange filing on Saturday, Kotak Mahindra Bank said it has initiated the process to appoint a new Managing Director and CEO. Vaswani took charge on January 1, 2024, succeeding one of India's most iconic banking founders, Uday Kotak.

Shares of Kotak Mahindra Bank fell more than 3% to Rs 396.25 apiece on the NSE on Monday morning. The stock was the top loser on the benchmark Sensex and Nifty indices.

Also read: Ashok Vaswani to step down as Kotak Mahindra Bank MD & CEO; bank begins search for successor

Nomura on Kotak Mahindra Bank

Nomura noted that Vaswani took charge after more than two decades of founder-led stewardship under Uday Kotak. His three-year tenure translates into exactly one completed term — a notably short stint for a franchise of this scale, the brokerage said.

While the bank has not shared details about possible candidates, Nomura identified Anup Kumar Saha (Consumer Banking, Marketing and Data Analytics), Paritosh Kashyap (Wholesale Banking) and Jaideep Hansraj (Affluent Banking and HR) as potential internal contenders.

Among them, Nomura believes Anup Kumar Saha appears to be the strongest fit. Appointed as a Whole-time Director by the RBI in March 2026, Saha leads businesses that sit at the centre of Kotak's long-term strategy, including consumer banking, marketing and digital transformation.

Nomura noted that Saha previously spent 14 years at ICICI Bank across retail banking and credit cards, followed by eight years at Bajaj Finance, where he eventually became Managing Director and CEO. An IIT and IIM alumnus, Saha combines deep consumer finance expertise with proven digital execution capabilities, making him well aligned with the bank's strategic priorities, the brokerage said.

While an external appointment appears less likely, Nomura said it cannot be ruled out.

"The board has previously demonstrated its willingness to appoint an external leader, having selected Vaswani over senior internal executives in 2023. Therefore, an external appointment cannot be ruled out. However, the presence of multiple RBI-approved Whole-time Directors, particularly Saha, provides the Board with credible internal options," it said.

Nomura also pointed to Saha's four-month tenure as Managing Director and CEO of Bajaj Finance before his resignation. While the company cited personal reasons, the brokerage said it does not view the episode as a meaningful negative, particularly given his subsequent appointment as Whole-time Director at Kotak after receiving RBI approval.

"We believe a Board recommendation by Sep-Oct'26 is plausible. If Saha is the internal choice, the succession path is already substantially de-risked. The risk event is an external hire, which may raise questions around the Board's succession process and create near-term execution uncertainty. We believe the CEO transition is unlikely to alter Kotak's strategic direction. Maintain Buy," Nomura said.

Jefferies on Kotak Mahindra Bank

Jefferies said Vaswani's decision not to seek a second term came as a surprise to investors. Since Uday Kotak's resignation in 2023, much of the bank's leadership has changed.

The brokerage also identified Anup Saha as a key contender, although it noted that a six-month succession process involving external candidates could create a near-term overhang.

Jefferies said succession quality and leadership stability remain key drivers of growth and valuation rerating. It maintained its 'Buy' rating on the stock, although Kotak has moved lower in its order of preference.

The brokerage has a target price of Rs 450 per share, implying an upside of more than 10% from the stock's previous closing price.

Kotak Mahindra Bank share price

Kotak Mahindra Bank shares have fallen more than 1% over the past week but gained 3% over the past month. The stock has declined nearly 11% so far in 2026.

Over the longer term, the stock has delivered returns of 8% over the past three years and 16% over the past five years. The bank currently has a market capitalisation of nearly Rs 3.98 lakh crore.