Kotak Mahindra Bank Ltd. share price target

The bank is reasonably confident to deliver loan growth of 1.5-2.0x the nominal GDP growth and sustain RoA over ~2% in the near to medium term.

Rising Above, Thriving Against All Odds

Net Interest Income (NII) for Q3FY25 has surged to INR 71,963 Mn, a growth of 9.8% YoY (+2.5% QoQ). This NII figure is 1.0% higher than our estimates.

We maintain our BUY recommendation on the stock.

Healthy credit growth-driven broad-based growth; deposits too grew strong, while CASA remain muted

Kotak Mahindra Bank (KMB) reported a standalone PAT of ~INR33b (in line; 10% YoY growth). Consol. PAT stood at INR47b (10% YoY growth) in 3QFY25.

Healthy loan growth and stable asset quality led to Kotak Mahindra Bank’s 4.1% q/q core PPOP growth. The faster than the system loan growth and greater operating efficiencies would drive a 2.2% RoA over FY25-27.

Kotak Mahindra Bank reported stable performance on modest expectation in Q3FY25. NII at Rs. 7,196 crore (in line) grew by 10% y-o-y/3% q-o-q led by healthy loan growth and stable NIMs. Net interest margin (NIM) was broadly stable q-o-q, improved by 2 bps q-o-q to 4.93% mainly led by lower cost of funds (down 9 bps q-o-q) driven by reduction in SA rate and higher share of current accounts

We recommend a BUY on the stock with a target price of Rs 1,916, implying an upside of 10% from the CMP.

Net Interest Income (NII) for Q2FY25 has surged to INR 70,196 Mn, a growth of 11.5% YoY (+2.6% QoQ). This NII figure is 1.3% lower than our estimates.

We maintain our BUY rating on the stock.

Kotak Mahindra Bank (KMB) continued to report margin contraction (11bps QoQ
to 4.9%) due to lower loan asset yields which was due to slower growth in unsecured loans.

Kotak Mahindra Bank (KMB) posted a standalone PAT of ~INR33.4b (5% miss, 5% YoY growth). Consol. PAT stood at INR50.4b (13% YoY growth) in 2QFY25.

KMB reported a weak performance in Q2FY2025 although on expected lines led by NIM contraction, weak business momentum, and higher slippages in turn led to uptick in credit cost.

Net Interest Income (NII) for Q1FY25 has surged to INR 68,424 Mn, a growth of 9.8% YoY (-1.0% QoQ). This NII figure is 2.1% lower than our estimates, on the back of higher-than-expected cost of funds.

We maintain our BUY recommendation on the stock.