- By Aditya Pratap Singh
- Thu, 25 Apr 2024 01:06 PM (IST)
- Source:JND
Axis Bank Market Cap: Axis Bank surpassed Kotak Mahindra Bank to become the fourth-largest lender in India by market capitalisation on Thursday. The development follows a 10 percent decline in Kotak Mahindra Bank's shares after the Reserve Bank of India barred the lender from onboarding new customers online and issuing new credit cards. Axis Bank, on the other hand, saw its shares rise by nearly 5 percent on the back of strong fourth-quarter results.
Kotak Mahindra Bank's market capitalisation (m-cap) is now falling around Rs 3.29 lakh crore on April 25, down 10 percent from its previous close. Axis Bank, on the other hand, which has an M-cap of Rs 3.43 lakh crore, saw its shares rise by 4.82 percent after the private sector bank reported a net profit of Rs 7,129 crore in the fourth quarter (Q4), compared to a loss of Rs 5,728 crore a year ago.
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HDFC Bank is the largest lender in India with an M-cap of Rs 11.5 lakh crore, followed by ICICI Bank (Rs 7.78 lakh crore) and State Bank of India (Rs 6.99 lakh crore). Stocks of all other banks except Kotak Mahindra Bank were trading in the green on Thursday. Kotak Mahindra Bank's shares were trading at Rs 1,641.90, down over 10 percent at 12:54 p.m. on Thursday on NSE. Axis Bank's shares, on the other hand, were trading 6 percent higher at around Rs 1,127 on the NSE.
Meanwhile, in early trade, Shares of India's largest lender HDFC Bank and ICICI Bank were also trading higher, SBI's shares were also up during the early trade hours.
The RBI on Wednesday prevented Kotak Mahindra Bank from admitting new customers through its online and mobile banking channels and issuing new credit cards with immediate effect after it discovered "major lapses" in the lender's IT risk management system.
The RBI, which oversees the banking industry, has issued an instant "cease" command to Kotak Mahindra Bank due to major issues emerging from the bank's failure to address issues in its IT management. It added that the bank was regarded as deficient in its IT risk and information security governance for two years - 2022 and 2023 - which was in breach of the requirements under regulatory guidelines.
