Archive · 23 Jul 2026
Mid-cap banks outperform Kotak Mahindra in Q1
In the first quarter of 2026, smaller private banks in India, like RBL Bank, YES Bank, and Karur Vysya Bank, grew their loans faster than the bigger Kotak Mahindra Bank.
These smaller banks are valued lower in the stock market but are doing well in lending to small businesses, retail customers, and gold loans.
Foreign banks are also investing in these smaller banks, which could help them grow even more.
Kotak Mahindra Bank, though larger, has a bigger loan book and maintains higher valuations.
Both types of banks are doing well, but the smaller ones are growing faster.
Mid-cap banks RBL Bank, YES Bank, and Karur Vysya Bank reported higher loan growth rates (23%, 18.3%, and 17.1% respectively) compared to Kotak Mahindra Bank's 15%.
Mid-cap banks trade at lower valuations (1.3 to 2.3 times price-to-book) compared to Kotak Mahindra Bank's 2.8 times.
YES Bank and Karur Vysya Bank showed improved net interest margins (2.7% and 4.26% respectively) compared to Kotak Mahindra Bank's 4.5%.
Foreign banks have acquired significant stakes in YES Bank and RBL Bank, indicating potential for future growth.
Kotak Mahindra Bank maintains a larger loan book and higher valuations despite lower growth rates.
- Who
- RBL Bank, YES Bank, Karur Vysya Bank, Kotak Mahindra Bank
- What
- Mid-cap banks outperformed Kotak Mahindra Bank in loan growth and valuations
- When
- June 2026 quarter
- Where
- India
- Why
- Mid-cap banks focus on SMEs, retail, and gold loans, driving higher growth rates
Mid-cap Banks
Kotak Mahindra Bank
Loan Growth
Mid-cap Banks
Mid-cap banks like RBL Bank, YES Bank, and Karur Vysya Bank reported higher loan growth rates (23%, 18.3%, and 17.1% respectively) compared to Kotak Mahindra Bank's 15%.
Kotak Mahindra Bank
Kotak Mahindra Bank, despite lower growth, has a significantly larger loan book.
Valuation
Mid-cap Banks
Mid-cap banks trade at lower valuations (1.3 to 2.3 times price-to-book) compared to Kotak Mahindra Bank's 2.8 times.
Kotak Mahindra Bank
Kotak Mahindra Bank maintains higher valuations due to its established reputation and larger market presence.
Net Interest Margins (NIM)
Mid-cap Banks
Mid-cap banks like YES Bank and Karur Vysya Bank showed improved NIMs (2.7% and 4.26% respectively) compared to Kotak Mahindra Bank's 4.5%.
Kotak Mahindra Bank
Kotak Mahindra Bank's NIM, though slightly lower, is still competitive and reflects its strong market position.
- RBL Bank
- Loan growth: 23% y-o-y, NIM: 4.13%, Valuation: 1.3 times price-to-book
- YES Bank
- Loan growth: 18.3% y-o-y, NIM: 2.7%, Valuation: 1.4 times price-to-book
- Karur Vysya Bank
- Loan growth: 17.1% y-o-y, NIM: 4.26%, Valuation: 2.3 times price-to-book
- Kotak Mahindra Bank
- Loan growth: 15% y-o-y, NIM: 4.5%, Valuation: 2.8 times price-to-book
- Foreign Investment
- Emirates NBD Bank acquired 60% stake in RBL Bank; Sumitomo Mitsui Banking Corporation holds 24.9% stake in YES Bank