Kotak Mahindra Bank beats SBI to become country's second-most valuable lender

Cornelia Mascio
Aprile 17, 2018

Mumbai: Kotak Mahindra Bank, once known for broking and deal making, on Monday surpassed the country's largest state-run commercial lender State Bank of India in market value for the first time to become the second-most valuable bank in India after HDFC Bank. HDFC Bank is the largest bank in terms of market value at Rs 5 crore. With almost 2 per cent gains in share price of Kotak Mahindra Bank, the market capitalisation of the bank jumped to Rs 2.23 lakh crore to reach marginally higher ground against SBI at Rs 2.22 lakh crore.

Kotak Mahindra Bank Ltd is now trading at Rs1,164.95 down by Rs5.1 or 0.44% from its previous closing of Rs1,170.05 on the BSE. State Bank of India has slipped to the third position now.

Giving examples, he added the Indian banking industry, which faced fraud of Rs 12,300 crore, in one-month time witnessed decline in market capitalisation, which was 13.2 times more than the fraud amount.The banking sector's market cap, which was at Rs 392,096 crore before the PNB fraud was reduced to Rs 279,508 crore in two -month time, the report said.

During intra-day trade on Monday, the Kotak Mahindra Bank scrip climbed 2.22% to hit an all-time high of Rs 1,174 apiece.

Kotak has been a steady performer over the rate cycles, and most analysts expect the bank would maintain its strong performance in the March quarter as well.

Recently a report by Nomura made a case why it is the right time for Kotak Mahindra Bank to make a bid for Axis Bank.

"There is a significant opportunity for well-run private sector banks, such as Kotak, to grow market share in the corporate and SME loan space, especially so in the backdrop of public sector banks struggling under the weight of NPAs and operational/risk management issues", said Lalitabh Shrivastawa, AVP - research, Sharekhan.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE