Kotak Mahindra Bank Ltd. is the first bank to have been created by a non-banking finance company called Kotak Mahindra Finance Ltd. The bank offers various financial services and banking products to retail customers as well as corporates. The bank is one of the top 5 banks in the country owing to the 5 main business activities it has undertaken. They are consumer banking, commercial banking, corporate banking, treasury, and other financial services.
Here is an analysis of the performance of the bank over the past 10 years.
Kotak Bank Financial Analysis
The total income of the bank in the year 2023-24 amounts to Rs 56,072.01 crores as compared to Rs 10,166.83 crores in 2014. The income has increased five times which shows the exponential growth of the bank. The market cap of the bank stands at Rs 3,41,922 crores as of May 2024.
On a year-on-year basis, the Net Interest Income (NII) in 2023-24 of the company stands at Rs 25,993 crores. The table below furthers the growth of the company in the past 10 years.
| Categories | FY 24 (In Rs) | FY 14 (In Rs) |
| Profit After Tax | 13,782 crores | 4,205.42 crores |
| Operating Profit | 19,587 crores | 4,004.47 crores |
| Earning Per Share | 91.62 | 32.19 |
Kotak Bank Share Price
The following Kotak Bank share price chart demonstrates the fluctuations in the share price of the bank.
Kotak Bank share price is currently trading at approximately Rs 1600. Basic EPS of Rs 32.14 in 2014 has gone up and is now at Rs 91.62.
The price has gone up by 15.66% in the past 5 years which is promising progress for investors.
In May 2024, Promoter Holdings stood at 25.90%, Foreign Investors’ Holding was at 35.94%, DII was at 21.64% and Public Holdings stood at 16.52%. However, according to forecasts by various stock analysts, the net income of the bank and revenue is expected to touch Rs 20703.2 crores and Rs 54885.9 crores in 2026.
Out of 37 analysts, 23 recommend buying the shares, 9 suggest holding on to these shares and 5 suggest selling them at the current price. It is one of the top-performing banks and is a big group with subsidiaries in Mauritius, London, Dubai, Singapore, New York, and San Francisco.
While the stock offers diversification in the banking sector, investors should consider their financial goals and risk profile before investing.
Sum It Up
Kotak Mahindra Bank is a one-stop shop for all kinds of financial solutions to their customer’s problems.
The bank has shown a remarkable improvement over the past decade with significant increases in PAT, Operating Profit, and NII. With a strong market capitalization and with a diverse range of foreign and domestic investors, this bank is a strong player in the banking sector of the country. However, every investor must consider their risk tolerance before investing in any stock.
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