ICICI Bank’s market cap fell below Kotak Mahindra ‘s in intra – day trade. Here’s what happened

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Mumbai | Updated: May 3, 2016 7:27:19 AM

Following a weak set of numbers for the three months to March, ICICI Bank’s market value fell below that of Kotak Mahindra Bank (KMB) in intra-day trade on Monday, reports Josephine John in Mumbai.

ICICI Bank Q4 results sharesThe lender had, however, regained its No. 3 spot in the market cap league by the close of the session. (Reuters)

Following a weak set of numbers for the three months to March, ICICI Bank’s market value fell below that of Kotak Mahindra Bank (KMB) in intra-day trade on Monday, reports Josephine John in Mumbai. The lender had, however, regained its No. 3 spot in the market cap league by the close of the session. ICICI Bank made provisions of R6,926 crore in Q4FY16 , a fivefold increase, which included contingent provisions for anticipated slippages in the current year.

Moreover, the lender disclosed that approximately Rs 44,100 crore of loans or 4.8% of the total exposure, across sectors, is rated below investment grade internally. The bank’s asset quality deteriorated with gross non-performing assets (NPAs) rising to 5.8% and net NPAs going up to 3%. In February KMB’s market capitalisation was higher than that of ICICI Bank by approximately Rs 5,000 crore for nearly a month. Since then, however, ICICI Bank ‘s value has risen by around 24% or Rs 25,000 crore, while KMB’s has increased by 19%.

HDFC Bank continues to remain the largest lender with a market cap of Rs 2,82,755 crore, followed by public sector lender State Bank of India with a market cap of Rs 1,44,698 crore. Even as both these lenders have maintained their rankings in the league table since the banking stocks hit a two-year low in February, at 23% the pace of market-value expansion was higher for SBI than that of HDFC Bank, at 18%.

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