Shares opened 4% higher on Tuesday, trading at ₹431.25, after the lender released its Q2 business update. The update highlighted a 24.7% YoY jump in net advances to ₹5.77 lakh crore, and a 23.2% rise in deposits to ₹6.51 lakh crore.
Citi kept its buy rating with a target of ₹465, citing stronger corporate, SME, and MFI loan momentum, while Goldman Sachs lifted its target to ₹540, reflecting confidence in the bank’s FCNR inflows and accelerated loan growth.
After stripping off a $1.68 billion FCNR exposure, core advances grew 21.6% YoY and 9.5% sequentially, comfortably beating Citi’s 9.2% estimate. Deposits also outperformed Citi’s 20% YoY estimate, climbing 23.2%.
Analysts project a 19% earnings growth for FY28, valuing the bank at 15× FY28 P/E. With a strong liquidity base and a likely acceleration in unsecured loan growth amid a low‑rate cycle, Kotak Mahindra Bank is expected to keep testing higher price levels.