Kotak Mahindra Bank plummets 13% after RBI’s intervention, mcap slips to ₹3.19 lakh crore

According to mcap, the top three most valued banks in India are HDFC Bank, ICICI Bank, and State Bank of India (SBI).

By Sneha Sengupta On Apr 26, 2024

The Reserve Bank of India (RBI) has prohibited Kotak Mahindra Bank from accepting new clients till further notice due to “serious deficiencies” in the private lender’s IT infrastructure. As a result, the stock of the bank has plummeted by over 13 percent. With its market capitalization (mcap) dropping to ₹3.19 lakh crore in just two days, Kotak Mahindra Bank has lost its position as the fourth-largest lender in India.

However, with a market capitalization of ₹3.48 lakh crore and a share price increase of about 5% following strong March quarter results, Axis Bank has surpassed Kotak Mahindra Bank to take the fourth spot as India’s largest lender.

In the January-March quarter, Axis Bank posted a net profit of ₹7,130 crore, up from a loss of ₹5,728.4 crore during the same period the previous year.

Net interest income (NII), which is the difference between interest collected and paid by private sector lenders, increased 11.5% year over year (YoY) to ₹13,089 crore in the quarter under review from ₹11,742 crore in the corresponding period last year.

With a market capitalization of ₹11.5 lakh crore, HDFC Bank leads the lenders, trailed by ICICI Bank at ₹7.78 lakh crore and SBI at ₹6.99 lakh crore. As of right now, Axis Bank is ranked fourth, with Kotak Mahindra Bank coming in at number five. Among the other major bank stocks on Thursday, Kotak was the only lender to go negative during the session.