In that case the question is does kotak bank deserve the same kind of valuation as hdfc bank?
ultimately the eps growth and value creation will be the function of ROE
with 2.2% roa and 6x leverage kotaks roe has always been in the range of 12-14%
over last decade the eps growth has been strong given banks ability to raise equity capital cheaply @ 4-6x book value and acquisition of ing vysya value accretive on price to book level.
with valuations correcting and no possilble big acquisition in sight, kotak may not be able to compound profits @ >14%
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