The management has highlighted that NIMs will bottom in the September quarter and will stabilise in the second half.
Even as loan growth stood at 14% from last year, it was driven higher by the corporate banking segment, which is a low margin business. The credit card business declined by 4% sequentially, while Personal Loans saw decline of 2% from last year.Brokerage firm Nomura maintained its “neutral” rating on the stock with a price target of ₹2,150.
It has cut its Earnings Per Share (EPS) estimates for the lender by 3% to 7% for financial year 2026-2028, while anticipating an Return on Assets (RoA) and Return on Equity (RoE) of 1.8% to 2% and 11% to 12% respectively over the same timeframe.At 1.9 times financial year 2027 book value per share, Nomura sees limited upside potential for the stock.
Morgan Stanley remains “overweight” on Kotak Bank with a price target of ₹2,600, in anticipation of earnings to accelerate from the second quarter, which can also be a tough one.
Lagged repricing of deposits, benefits of the Cash Reserve Ratio (CRR) cut and improvement in its loan mix could trigger this earnings acceleration, the brokerage said.
Bernstein has a “market-perform” rating on the lender with a price target of ₹1,970. The brokerage said that credit costs are at a multi-quarter high, while asset quality has worsened.
26 out of the 44 analysts covering Kotak Mahindra Bank have a “buy” rating on the stock, 13 of them have a “hold” rating, while five have a “sell” recommendation.
Shares of Kotak Mahindra Bank are trading 6.3% lower at ₹1,990.3. The stock is down 13% from its recent 52-week high of ₹2,301.
