Please go through the entire thread,it will give you amazing insights into this.
When it comes to the business of banking,HDFC Bank is second to none,All this has happened while one Mr. Aditya Puri has been at the helm from September 1994 to the time he turns 70 on October 26, 2020.
Like it or not,a cult following tends to build around bankers,and it is impossible to replace Mr. Puri and therefore the market participants are nervous about who will be the successor,being hit by the Covid crisis at the same time has complicated things further.
Kotak trades at a slight premium at the moment because:
1.Their Loan book is 1/4’th the size of HDFC Bank and thus means that they may be able to grow at higher rates for a longer period.
2.Uday Kotak will be 70 in March 2029.
3.Kotak has AMC,Life and general insurance business that comes along with the Bank.
4.Kotak has a higher CASA but that was built with higher 6% rate which they have strategically cut to 4.5% recently,this has been done brilliantly and given the current circumstances I think they will still be able to maintain CASA above 50%.
Apart from interest rates coming down in the system the other major trigger for this is that they may be anticipating credit losses and have done this to give the balance sheet a further cushion to absorb this.