This article looks practical with very balannced approach.
After few years, when credit cycle turns around and NPA(s) may start rising, then conservative banks like Kotak Bank can prove their potential. During growth phases, banks can become aggressive as we have seen during past few decades, and that leads to high NPA(s) at later date. Kotak Bank should make their IT infrastructure robust and more secured, and over a period can solve this current weakness.
After few quarters if IT systems become stable, there is a possibility to get back to their original high NIM(s), and Deposit Growth which can drive credit growth. Till that time, Investors need to keep faith in the capability of an experienced management.
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