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After examining the lender’s information technology systems in 2022 and 2023, the regulator had flagged several issues. But the bank remained non-compliant.

While the earnings have been encouraging, the real challenge lies in addressing the slowing deposit growth and leadership uncertainty.
After successive controversies and growing unease over promoter influence, the central bank is reshaping the lender—starting with management, moving to its board and tightening the screws on ownership.
As growth flatlines, acquisition of the government-controlled lender may be the only way out for the Uday Kotak-promoted bank to stay relevant.