MARKET LOVES KOTAK AND IT SHOWS IN STATS

Quick comment: The merger of Kotak and ING would create the fourth largest private bank behind ICICI Bank, HDFC Bank and Axis Bank. However, the combined market cap of Kotak and ING Vysya Bank now already equates the third largest bank Axis Bank – But on all parameters, Axis Bank is nearly double of the combined entity of Kotak + ING. Is the market justified in this? Well that’s stock market for you…

PARAMETER                KOTAK + ING               AXIS BANK

Market Cap                   Rs 1.11 lakh cr              Rs 1.1 lakh cr

Branches                      1214                             2402

ATMs                            1794                             12,922

Income                          Rs 13,576 cr                  Rs 19,356 cr

PAT                              Rs 3,123 cr                   Rs 6,218 cr

Assets                          2 lakh cr                        3.8 lakh cr        

Advances                      1.2 lakh cr                     2.3 lakh cr

Deposits                       1.1 lakh cr                     2.8 lakh cr

ROE                             12.8%                           18.2%

Profit per employee        Rs 7.8 lakh                    Rs 15.4 lakh