Kotak Mahindra Bank Ltd. share price target

Kotak delivered broadly a steady performance with balanced growth and profitability. Core metrics improved, supported by healthy loan and deposit growth and asset quality gains.

We maintain our BUY recommendation on the stock.

Kotak Mahindra Bank (KMB) reported in-line Q2FY26 PAT of INR 32.5bn as muted other income (treasury loss) was offset by tight opex control. RoA stood strong at 1.9%.

Consistent in delivering superior RoA of 2+% and RoE of 13+% Q2FY26 performance: Kotak Mahindra Bank delivered a steady Q2FY26 performance, marked by advances growth of 16% YoY (4% QoQ), led by strong traction in business banking and mortgages, while deposits rose 15% YoY (3.1% QoQ) with CASA at 42.3%., reflecting strong franchise momentum. NIM stood at 4.54% (11 bps QoQ) as the full impact of repo rate cuts and lower high-yield mix. Credit cost moderated to 79 bps (vs 93 bps in Q1) with improvement in MFI and credit card portfolios, while asset quality remained robust (GNPA/NNPA:...

Kotak Mahindra Bank (KMB) reported a standalone 2QFY26 PAT of ~INR32.5b (in-line with MOFSLe). Consol PAT stood at INR44.7b (down 11% YoY/flat QoQ).

Kotak Mahindra Bank (KMB) has aligned its loan trajectory with a disciplined target of 1.5-2.0x, while consciously improving business granularity by focusing on the retail and SME segments.

The bank posted solid performance, supported by stable asset quality and improving digital engagement across customer segments. The management is *over or under performance to benchmark index focused on expanding the retail unsecured loan portfolio, scaling premium credit card offerings and driving efficiency via technology investments. Strategic initiatives such as deposit mobilisation, calibrated rural lending and risk-based microfinance underwriting are likely to support long-term stability as well. Although stress in the retail commercial vehicle segment may weigh on near-term performance, improving...

We maintain our BUY recommendation on the stock.

Kotak Mahindra Bank (KMB) reported weak Q1FY26 PAT of INR 32.8bn (~6% miss), pulled down by ~32bps QoQ decline in NIM and rise in credit costs.

KMB saw a weak quarter as miss on provisions, fees and NII led to 13.7% lower core PAT. While NII was cushioned as cash was utilized to pay-off borrowings, Q2FY26 would see impact of normal liquidity and 50bps repo cut suggesting NIM decline QoQ. However, H2FY26 NIM could improve due to CRR cut and deposit repricing. While loan growth was healthy at 4.2% QoQ, it was led by SME and mid-market. Barring housing, retail growth was sluggish due to weak demand while unsecured recovery is slower. Hence, we trim loan growth by...

We recommend a BUY with a Target Price of Rs 2,525/share, implying a healthy 17% upside from CMP.

The growth was modest in Q4FY25. However, a rebound is anticipated, driven by a pickup in consumer and unsecured lending, which is expected to boost overall yields. The current account portfolio of KMB has been expanding at a healthy rate and there has been a slight uptick in the current account savings account (CASA) ratio. Further, with the lifting of the ban on card issuance and relaunch of 811, customer acquisition is expected to resume, shielding yields from the impact of...

Healthy credit growth driven by secured segments; deposits growth led by healthy growth in CASA deposits

KMB saw a mixed quarter as core PPoP missed PLe by 4% though asset quality improved. Despite lifting of embargo and acquiring StanC's PL portfolio of Rs 33bn, loan growth was weak at 13.5% YoY (PLe 15.0%). NII was 3% lower owing to QoQ increase in balance sheet liquidity by Rs377bn leading to softer NIM at 4.5% for FY25 (PLe 4.67%). While we are factoring NIM decline of 10bps YoY in FY26E to 4.4%, levers for upgrade are (1) utilization of excess liquidity (2) faster growth in PL/CC and (3) reduction in fixed SA rate from 3.8%. Asset quality was...

We maintain our BUY recommendation on the stock.

Kotak Mahindra Bank (KMB) reported a standalone 4QFY25 PAT of ~INR35.5b (6% miss on MOFSLe), because of higher provisions (to shore up PCR, partly due to AIF provisions of INR560m). Consol. PAT stood at INR49b (5% QoQ growth and 8% YoY decline) in 4QFY25.

Kotak Mahindra Bank (KMB) reported in-line healthy PAT at Rs35.5bn/2.2% RoA, aided by higher other income and partly offset by higher provisions – such provisions were for further shoring-up PCR closer to that of large peers at 78% and AIF provisions (Rs1bn).

Q4FY25 numbers were weak. NII, at Rs. 7,284 crore (marginally below estimates), grew by 5% y-o-y/1% q-o- q. Net interest margin (NIM) was broadly stable q-o-q, improved by 4 bps q-o-q to 4.97% benefiting from the lower day count in Q4 although outlook on NIMs remains negative.

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.