HDFC Bank overhang eases, Kotak CEO exit creates fresh uncertainty: What Pranav Gundlapalle is watching now

Bernstein sees HDFC Bank's regulatory overhang easing after a key concern was addressed, with RBI approval of the CEO nomination remaining the key catalyst that could unlock 10-15 percent upside. Kotak Mahindra Bank, meanwhile, faces fresh uncertainty after its CEO resigned, potentially delaying strategic clarity at a time when the bank was articulating a sharper direction, including an ambition to become the third-largest private sector bank by profits. Bernstein is maintaining a Hold on Kotak through the transition and a bullish stance on HDFC Bank, noting the entire private banking sector trades at a significant discount to long-term averages.