Kotak Mahindra Bank has been a stark underperformer this year to date. Despite having all the right ingredients for success, the stock has failed to enthuse investors as the optically expensive valuation was not backed by adequate growth.
Not only compared to peers but even relative to the industry, Kotak bank’s growth has been anaemic. In more recent times, there have been worries about succession as founder CEO Mr Kotak’s term ends in December 2023.
The bank however has seen growth acceleration in recent times driven by secured assets. It has adequate capital to take on capital-starved competition when the environment is right.
Asset quality continues to be best in class and the bank has created a robust deposit profile within the industry, leading CASA ratio that enables it to maintain margin without comprising on asset quality.
In the special segment of ‘Moneycontrol Pro Ideas For Profit’, moneycontrol.com’s Madhuchanda Dey gets more details on the company’s performance, going forward.
Watch the video for more.
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