Goldman Sachs Sees Kotak Mahindra Bank Doubling Market Value
(Bloomberg) -- Kotak Mahindra Bank Ltd., controlled by Asia's richest financier, Uday Kotak, is set to double its value over the next five years, as its lending business transforms with the help of digital channels, according to Goldman Sachs Group Inc.
The Mumbai-based lender is set to deliver sustainable operating profit and loan growth as it deploys excess equity capital, Goldman analysts wrote in a July 5 note, having upgraded the company to a buy recommendation from neutral. The bank's valuation may rise beyond $100 billion by 2027, according to the note.
Kotak's efforts to expand its online banking footprint are showing early signs of benefit, as one-third of its loan disbursal to unsecured borrowers happened through its digital platform during the March quarter. Credit growth in India's banking system has jumped to a three-year high as the economy shows signs of a revival.
Shares of Kotak Mahindra have underperformed the Nifty Bank Index over the past two years, with its valuation plunging to one-standard deviation below the mean. The bank's shares jumped 2.3% to 1,701.9 rupees ($21.5) as of 12:51 pm in Mumbai trading, paring this year's losses to 5%.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
