JPMorgan has retained an Overweight rating on Kotak Mahindra Bank, with a target price of Rs 2030, reflecting an 8% upside. The bank’s Q2 net income of Rs 33.4 billion grew 5% year-on-year, though this was 2% below JPMorgan’s expectations due to higher provisions.
Asset quality showed some strain, with net slippages at 1.2%, mainly from the credit card and MFI segments. However, JPMorgan pointed to the recent acquisition of Standard Chartered India’s personal loan book, which could add 95,000 customers and potentially increase cross-selling opportunities, helping improve NIMs.
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