Axis Bank's climb to India's fourth-largest bank by market capitalization, surpassing Kotak Mahindra, was powered by good Q4 results, whilst Kotak Mahindra's share price fell 10% owing to RBI limitations.
On Wednesday, Axis Bank overtook Kotak Mahindra Bank to become India’s fourth-largest lender by market cap. The turnaround came as shares of Kotak Mahindra Bank fell 10% on RBI restrictions on onboarding new customers and issuance of credit cards, while shares of Axis Bank rose nearly 5% on strong Q4 earnings.
As of 11:11 p.m. on April 25, Kotak Mahindra Bank had a market capitalization (mcap) of Rs 3.29 lakh crore, and its shares have fallen 10%. Axis Bank has a market capitalization of Rs 3.43 lakh crore, up 4.82 percent after reporting a net profit of Rs 7,129 crore in the year-ago period last year.
At 11:21 am on Wednesday, shares of Kotak Mahindra Bank fell 9.82 percent to Rs 1,662 per share on the BSE. However, shares of Axis Bank rose 5.20 percent to Rs 1,119 per share on the BSE.
India's largest lender, HDFC Bank, rose 0.09 percent to Rs 1,512.3 on BSE, shares of ICICI Bank rose 1.24 percent to Rs 1,110.5, and shares of SBI 785 rose to Rs 1,110.5 so far on BSE. It closed at.75.
On April 24, the Reserve Bank of India banned Kotak Mahindra Bank from acquiring new customers, as well as from issuing new credit cards through its mobile and internet-based banking platforms but customers show credit if they already exist -Cardholders to serve with.
The RBI said that due to serious concerns in the RBI IT estimates for the bank for 2022 and 2023 and the bank’s continued inability to address this issue effectively and expeditiously during this period.
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