what is the future of Kotak Mahindra Bank?

Nishith Verma's picture

About Nishith Verma

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I am not sure what kinda future are you talking here. Assuming that you are asking about stocks future Kotak will have tough time going forward. Banking industry is getting overcrowded and their is need for consolidation otherwise it turn into somewhat similar like telecom .

Big banks like ICICI, SBI and HDFC have definitely advantage in getting business due to size and penetration while kotak is mostly urban concentrated. Banks generate their profit from cheap deposits and high interest loans it gives out. Margin in interest rate is key. If bank accepts deposit at 7% rate and gives home loans at 10% that means it making profit of 3% . Big banks can garner more deposits and hence their share continue to rise.

My personal view is that Kotak will be acquired sooner or later.

 

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