Shares of fell sharply on Monday, declining 4 per cent on the National Stock Exchange to ₹353.45 after hitting a 52-week low of ₹351.65, as investors reacted to reports of an alleged ₹160-crore fixed deposit fraud linked to the Panchkula Municipal Corporation.
The bank, however, moved to clarify that the issue does not have any material financial impact. In a communication to stock exchanges, Kotak Mahindra Bank said there is no material impact under the provisions of Regulation 30(4) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The lender stated that it is currently examining the matter following instructions from the Municipal Corporation of Panchkula.
It added that it has informed the relevant authorities and is fully cooperating with the municipal body, government authorities and law enforcement agencies as part of the ongoing process.
“There is no material impact, in terms of the provisions of Regulation 30(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following instructions from the Municipal Corporation of Panchkula, Kotak Mahindra Bank is examining the matter in subject,” it said in an exchange filing.
The clarification comes amid heightened market sensitivity to governance-related developments in the banking sector, with the stock witnessing selling pressure following the emergence of the report.