Bernstein has assigned a ‘Market Perform’ rating to Kotak Mahindra Bank, setting a target price of ₹1,950 per share, which is in line with the current market price of ₹1,945.50.
While the RBI’s removal of restrictions on new customer onboarding and credit card issuances is seen as a positive development, Bernstein believes its impact on Kotak’s profitability will be limited, though it could help ease margin pressure following the recent rate cut.
More importantly, the brokerage sees this as a broader relief for the banking industry, as it signals that increased regulatory intervention with severe penalties is emerging as a key risk for the sector.
Despite the normalization of Kotak’s operations, Bernstein maintains a neutral stance given its cautious outlook on regulatory risks in the banking sector.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.
