Up until Tuesday, Kotak Mahindra Bank Ltd's stock had lost 23% on a year-to-date basis. Peer HDFC Bank Ltd's saw an erosion of 32%.
But a conference call with analysts on Tuesday has pulled down shares of Kotak Mahindra Bank sharply to make its valuation loss almost on par with that of HDFC Bank.
What seems to have changed in a day? In the call, the management of Kotak Mahindra Bank said it is working with three scenarios of the coronavirus (covid-19) impact, one of which it believes would play out.
That scenario entails a surge in slippages, a sharp hit on profits and a long drawn recovery that could take six-nine months.