The credit growth investors wanted is here, but without the profitability kicker. About Rs 91,000 crore was erased from the combined market value of HDFC Bank, Axis Bank and Kotak Mahindra Bank shares as faster loan growth collided with shrinking margins, weakening low-cost deposit franchises and lingering leadership uncertainty.
Axis Bank shares plunged 5.6% on Monday, wiping out about Rs 23,000 crore in market capitalisation. HDFC Bank declined 4.56%, translating into a loss of roughly Rs 57,500 crore, while Kotak Mahindra Bank fell 3%, eroding another Rs 10,300 crore. Together, the three lenders lost approximately Rs 90,800 crore in market value.
