Bernstein has given Kotak Mahindra Bank a Market Perform rating, with a target price of Rs 1750, suggesting a potential 6% downside. The bank’s Q2 results were described as uninspiring, with a continued decline in RoA, which dipped to 2.2%, and a persistent decline in Net Interest Margins (NIMs).
Bernstein noted that while loan growth of 18% was healthy, deposit growth of 15% was not significantly better than its peers. The brokerage sees little room for outperformance in deposit growth and believes that clarity on the RBI embargo and NBFC circular will be key to assessing the bank’s future growth potential.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
