Morgan Stanley has maintained its Overweight rating on Kotak Mahindra Bank with a target price of ₹2,650, indicating a potential upside of 23% from the current market price of ₹2,150.00. The brokerage highlighted that the bank delivered a strong first-quarter update, outperforming the broader banking system despite a muted macroeconomic backdrop.
Kotak Mahindra Bank reported healthy balance sheet growth, with average deposit growth at 5% quarter-on-quarter and 13% year-on-year. The brokerage termed this performance “strong” relative to system-wide trends, which have shown signs of moderation in recent months.
However, growth in CASA (current and savings account) deposits was more modest—up 2% QoQ and 4% YoY—reflecting some softness in low-cost deposit mobilisation.
Morgan Stanley noted that the bank’s resilience in a challenging environment reinforces its structural strengths, including prudent risk management, capital efficiency, and a robust liability franchise. The brokerage remains optimistic about Kotak’s ability to sustain growth and expand profitability over the medium term.
Disclaimer: The views expressed above are those of Morgan Stanley and do not constitute investment advice. This article is for informational purposes only.
