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Today's prices ask more of Kotak Mahindra Bank than of ICICI Bank.
At current prices, buyers of ICICI Bank are assuming about 17.0% return on equity against 17.3% in its own record; for Kotak Mahindra Bank it is 16.3% against 13.1%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: ICICI Bank is worth about 2.3 times Kotak Mahindra Bank on the stock market.
- Record: On revenue the two have grown at much the same pace: ICICI Bank compounded at about 13% a year (FY2018–FY2026) and Kotak Mahindra Bank at about 13% (FY2019–FY2026).
- What to watch: sustaining return on equity at ICICI Bank; return on equity versus capital at Kotak Mahindra Bank.
| ICICI Bank | Kotak Mahindra Bank | |
|---|---|---|
| Price | ₹1,584 | ₹489 |
| Market cap | ₹11.37L Cr | ₹4.86L Cr |
| P/E | 19.2 | 22.6 |
| P/B | 3.00 | 2.68 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
From clean-up to one of the highest-return big banks
ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market. Its group includes a life insurer (ICICI Prudential Life), a general insurer (ICICI Lombard) and a stake in the ICICI Prudential asset-management business.
From finance company to full financial group
Kotak Mahindra Bank grew out of a finance company founded by Uday Kotak in 1985 and became a bank in 2003. Alongside lending and deposits, the group runs one of India's larger broking and investment-banking businesses, a life insurer, an asset manager and a car-finance arm.
02The records side by side
On revenue the two have grown at much the same pace: ICICI Bank compounded at about 13% a year (FY2018–FY2026) and Kotak Mahindra Bank at about 13% (FY2019–FY2026). By revenue, ICICI Bank is about 2.9 times the size of Kotak Mahindra Bank. ICICI Bank kept 18.5% of revenue as net profit in FY2026; Kotak Mahindra Bank kept 17.8% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: ICICI Bank · Kotak Mahindra Bank.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Sustaining return on equityThe price leans on ICICI holding returns well above its cost of equity. Each point of return it sustains — or loses — moves the value sharply.
- Retail and unsecured growthFaster-growing retail loans earn more but carry more credit risk when the cycle turns.
- Return on equity versus capitalKotak holds more capital per rupee of loans than most peers, which caps its return on equity unless growth picks up.
- The deposit franchiseLow-cost current and savings deposits are the cheapest funding a bank can have; keeping them is central to its margins.
05What could go wrong
- The credit cycleUnsecured personal loans and credit cards have grown quickly across the industry; a downturn there would show up in provisions first.
- Margin pressureRate cuts can compress lending margins faster than deposit costs fall.
- Regulatory actionThe 2024 RBI restriction showed how quickly technology lapses can stall growth.
- Slower growth than peersCaution can mean losing share in a strong credit cycle.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is ICICI Bank or Kotak Mahindra Bank better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, ICICI Bank trades at 19.2 times earnings and 3.00 times book value, and Kotak Mahindra Bank at 22.6 times earnings and 2.68 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between ICICI Bank and Kotak Mahindra Bank?
ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market. Kotak Mahindra Bank grew out of a finance company founded by Uday Kotak in 1985 and became a bank in 2003.
Are ICICI Bank and Kotak Mahindra Bank valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for ICICI Bank and Kotak Mahindra Bank?
Worked backwards from the share price, ICICI Bank needs about 17.0% return on equity and Kotak Mahindra Bank about 16.3% return on equity, against 17.3% and 13.1% in their own records.