Axis Bank on Thursday overtook Kotak Mahindra Bank to become the fourth largest lender by market capitalisation in India. The development comes after the shares of Kotak Mahindra Bank declined 10 per cent following restrictions by the RBI from onboarding new customers online and from issuing credit cards. Axis Bank‘s shares, on the other hand, jumped around 5 per cent on robust Q4 results.
Kotak Mahindra Bank’s market capitalisation (mcap) currently stands at Rs 3.29 lakh crore as on 11:11 am on April 25 as its shares plunged 10 per cent. On the other hand, Axis Bank’s mcap stands at Rs 3.43 lakh crore after its shares jumped 4.82 per cent as it posted Q4 net profit of Rs 7,129 crore against 5,728 crore loss a year ago.
Also Read: Why Has RBI Barred Kotak Mahindra Bank from Adding New Customers Online? What’s Next for the Lender?
HDFC Bank topped the lenders in India with a mcap of Rs 11.5 lakh crore, followed by ICICI Bank (Rs 7.78 lakh crore) and State Bank of India (Rs 6.99 lakh crore).
Barring Kotak Mahindra Bank, all other lenders were trading up on the stock market on Thursday.
Shares of Kotak Mahindra Bank on Thursday were trading 9.82 per cent lower at Rs 1,662 apiece on the BSE at 11:21 am. However, Axis Bank’s shares jumped 5.20 per cent to trade at Rs 1,119 apiece on the BSE.
India’s largest lender HDFC Bank’s scrip was also up by 0.09 per cent at Rs 1,512.3 apiece on the BSE, while ICICI Bank’s shares were also trading 1.24 per cent higher at Rs 1,110.5 apiece on the BSE. SBI’s stock was also up at Rs 785.75 on the BSE.
On April 24, the Reserve Bank of India barred Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels, and from issuing fresh credit cards.
It, however, said the bank shall, however, continue to provide services to its existing customers, including its credit card customers.
These actions were necessitated based on significant concerns arising out of the RBI’s IT examination of the bank in 2022 and 2023 and the bank’s continued failure to address these concerns in a comprehensive and timely manner, the RBI said.
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