Kotak Mahindra Bank Limited

“Kotak Mahindra Bank is a high-quality Indian private bank with a durable multi-layered moat, fortress capital ratios, and a long structural runway into India's credit deepening story — but FY2026 earnings have declined year-on-year, ROE sits at a structurally suppressed 11.4% due to persistent overcapitalisation, the CASA funding cost advantage is narrowing, the 2024 RBI IT ban revealed real governance gaps, and the founder-to-professional-CEO transition remains unproven; at 2.09x P/B the market already prices in the franchise quality without offering meaningful margin of safety, making this a business to track closely for a better entry around 1.7-1.8x P/B rather than own aggressively today.”