Kotak Mahindra Bank – Low Cost Liability Banking Franchise

Can someone help me build a bear case for Kotak Mahindra Bank? I see this as a stable 15% compounder going forward. My bull thesis are:

1. Large runway for growth. Total Assets are still just about 5.4 Lakh crore. Compared to HDFC Bank’s 22 Lakh crore and SBI’s over 50 Lakh crore.
2. Advances are growing at 20% and expected to continue to grow at same rate.
3. Price to book and PE ratio is now at par with HDFC (infact even lower as of today).
4. Owns subsidiaries that can grow at over 15% for over a decade: Kotak Life Insurance, AMC, Alternative Assets, Kotak Securities (don’t see this growing at 15% though).
5. NIMS would most likely contract a bit. Not by much though as retail lending picks up.

Ofcourse, there is an overhang of Uday Kotak retiring. But pretty sure he would have top quality leader taking up his space while he continues to monitor things from arm’s length.

Another overhang – Deposit’s not picking up as fast as Advances. But needs to be watched overtime.

Looking forward to a bear case here.