Axis Bank overtakes Kotak Mahindra - Becomes 4th Largest Lender
On Thursday, Axis bank overtook kotak mahindra bank to take the fourth spot among Dalal Street's major banking stocks. Better-than-expected Q4 results for Axis bank saw its shares rise by 4%, while Kotak's shares fell by 10% as a result of the RBI's prohibition on the issuing of new credit cards and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital customer sourcing. Consequently, Axis Bank's market valuation increased to Rs 3.4 lakh crore, while Kotak's dropped to Rs 3.3 lakh crore of its own. The three most valued indian banks are still hdfc bank, SBI, and ICICI Bank.
Axis and otak have long been competitors. Up until recently, when investors started to worry about succession difficulties following uday Kotak's departure, Kotak had the highest market value. The stock's value dropped as a result.
The RBI recently prohibited Kotak from issuing new credit cards and enrolling new clients online, which furthered the company's stock slide.
Analysts fear for Kotak's future in the event that these problems are not promptly rectified.
The RBI recently prohibited Kotak from issuing new credit cards and enrolling new clients online, which furthered the company's stock slide.
Analysts fear for Kotak's future in the event that these problems are not promptly rectified.
According to Motilal Oswal, Kotak has been seeing growth in retail items, particularly through wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital channels. However, the RBI restriction would impede this expansion and have an impact on profitability.
Similar limitations caused hdfc bank to lose market share in terms of credit card expenditure. Kotak claims that it is attempting to enhance its IT infrastructure and fix problems with the RBI.
Analysts believe that these limits will be reconsidered following an external audit, which may take six to twelve months.
Similar limitations caused hdfc bank to lose market share in terms of credit card expenditure. Kotak claims that it is attempting to enhance its IT infrastructure and fix problems with the RBI.
Analysts believe that these limits will be reconsidered following an external audit, which may take six to twelve months.