UBS, in a recent report has said that Kotak Mahindra Bank and IndusInd Bank are the least preferred among private bank stocks due to loan exposure to vulnerable corporates and rising asset quality risks. “IndusInd has a relatively higher exposure to vulnerable corporates, at 24.7% of total loans. Kotak Mahindra also has greater-than-expected exposure to vulnerable corporates, at 13.4% of total loans," the report mentioned. Vulnerable corporate loans (excluding NIG) for ICICI (6.9 percent), Axis (6.7 percent) and HDFC Bank (5.8 percent) are relatively lower among peers. Among public sector banks, SBI and PNB are the brokerage's least preferred stocks.