Nitin Bhasin continues to hold a sell rating on Kotak Mahindra Bank. While the stock saw positive market reaction, he believes concerns remain. Specifically, Bhasin highlights that deposit growth has not translated into robust credit expansion, especially for high-quality borrowers who are now cash-rich. The real credit demand is shifting to MSMEs and the lower economic segments. Bhasin questions whether private sector banks like Kotak are adequately positioned to cater to this emerging demand. He also contrasts this with NBFCs, which seem better geared for that segment.
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