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

Private lender Kotak Mahindra Bank (KMB), on Monday, overtook rival State Bank of India (SBI) to become the country’s second-most valuable bank. Shares of Kotak Mahindra Bank Ltd climbed 1.8 percent on Monday, helping it beat the country’s largest lender, state-run SBI for the first time.

KMB had a market capitalisation of Rs 2,22970.40 crore, after its shares closed 1.88 percent higher on Monday. According the The Economic Times, the bank’s market capitalisation rose to Rs 2.23 lakh crore at the end of the day's trade on Monday. SBI's market capitalisation stood at Rs 2,22,043.74 crore.

Representational image. Reuters

Representational image. Reuters

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.

HDFC Bank, with a Rs 5.03 lakh crore market capitalisation, is the most valuable bank in India.

“While PSU banks, including SBI are reeling under several issues like non-performing assets and continued equity dilutions, there was a gradual shift by investors from private corporate lenders to private retail lenders, which led their shares touching new highs each year,” Rajat Rajgarhia, MD-institutional equities at Motilal Oswal Financial Services was quoted as saying by The Economic Times.

State-run banks including the SBI have been reeling under non performing assets (NPAs) and rising defaults. The nation's largest lender saw its net bad loans ratio spiking to 5.61 percent of advance, from 4.24 percent, during the third-quarter of 2017-18. The gross dud assets ratio jumped from 7.23 percent and crossed the double digit mark, at 10.35 percent, during the quarter under review.

The SBI Group in February reported a massive Rs 1,886.57 crore net loss for the December quarter of the previous fiscal as its bad loans and provisions spiked. It had, in contrast, reported a net profit of Rs 2,152.14 crore for the October-December quarter of fiscal 2016-17.

With inputs from PTI

Updated Date: Apr 17, 2018 13:59 PM

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