Axis Bank Surpasses Kotak Mahindra: Banking Sector Dynamics”

1. Axis Bank’s Market Capitalization: Axis Bank has surpassed Kotak Mahindra Bank to become the fourth-largest lender in terms of market capitalization. This shift occurred following a significant fall in Kotak Mahindra Bank’s share price due to the RBI’s ban on onboarding customers online and via mobile banking.

2. Axis Bank’s Share Price Performance: Axis Bank’s shares were trading 4.70% higher at Rs 1,113.65 on the Bombay Stock Exchange (BSE), with a market capitalization of Rs 3,42,488.70 crore. In contrast, Kotak Mahindra Bank’s shares experienced a 10% decline, leading to a lower market capitalization of Rs 3,29,597.28 crore.

3. Analyst Recommendations for Axis Bank:

   • Religare Broking maintained a ‘Buy’ rating on Axis Bank’s stock with a target price of Rs 1,275, valuing the standalone bank at 1.7 times estimated FY26 book value.

   • Nirmal Bang raised its FY25E and FY26E estimates for Axis Bank and maintained a ‘Buy’ rating with a revised target price of Rs 1,255, valuing it at 1.9 times March 2026E ABV.

   • Prabhudas Lilladher suggested that Axis Bank’s discount to ICICI Bank should narrow, maintaining a target price of Rs 1,400 and retaining a ‘BUY’ rating.

4. Axis Bank’s Leadership Announcement: Axis Bank announced the re-appointment of Amitabh Chaudhry as MD & CEO till December 2027.

5. Impact on Kotak Mahindra Bank: The RBI ban is expected to disrupt the growth trajectory of retail products for Kotak Mahindra Bank, impacting overall margins and profitability. Motilal Oswal reiterated a Neutral rating on the stock with a revised target price of Rs 1,900.

6. Disclaimer: Business Today reminds readers that stock market news is for informational purposes only and advises consulting with a qualified financial advisor before making investment decisions.

In summary, Axis Bank’s rise in market capitalization, along with analyst recommendations and leadership announcements, reflects significant developments in the banking sector, while Kotak Mahindra Bank faces challenges due to regulatory issues.

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