SBI falls to 3rd position as Kotak Mahindra Bank overtakes it in terms of m-cap

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Kotak Mahindra Bank on Monday became the second most valuable bank in India by dislodging State Bank of India from the position. With a market capitalisation (m-cap) of Rs.2.23 lakh crore, Kotak Mahindra Bank is now second only to HDFC Bank, which has a market cap of Rs.5.03 lakh crore.

SBI
Kotak Mahindra Bank dislodged SBI to become the second most valuable lender in India.

SBI previously held the second position with a market cap of Rs.2.22 lakh crore.

Kotak Mahindra Bank (KMB), promoted by Uday Kotak has had an excellent 2018, with its market value growing by 16 per cent in the period. SBI, on the other hand, has seen a 19 per cent drop in its market value, which was 44 per cent higher than KMB at the start of the year.

ICICI Bank, which has been plagued with problems of late stands fourth in terms of m-cap of banks, followed by Axis Bank and IndusInd Bank.

Position Bank name Market cap (in billion) Percentage change (year-to-date)
1 HDFC Rs.5,031 +3%
2 Kotak Mahindra Bank Rs.2,230 +16%
3 SBI Rs.2,225 -19%
4 ICICI Bank Rs.1,847 -8%
5 Axis Bank Rs.1,392 -4%
6 IndusInd Bank Rs.1,120 +13%
7 Yes Bank Rs.715 -1%
8 Bandhan Bank Rs.619 +38%
9 Bank of Baroda Rs.396 -7%
10 PNB Rs.274 -42%

Kotak Mahindra Bank has seen a 50 per cent increase in its depositor base, going up from 8 million in 2017 to 12 million in 2018. While its Q3 profit for the last financial year jumped by 28 per cent, its gross NPAs stood at just 2.31 per cent as of Dec 2017.

Uday Kotak is the biggest shareholder among the bank’s promoters, with a 29.75 per cent share. The Reserve Bank of India has asked him to reduce this share to 15 per cent by March 2020.

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