UBS has maintained its buy rating on Kotak Mahindra Bank with a target price of ₹2,450 per share following an in-line Q2FY26 performance. The brokerage said lower non-interest income was offset by controlled operating expenses, while loan growth remained stronger than that of most large private peers.
UBS highlighted that the bank’s CASA ratio rose by 140 basis points sequentially — the first meaningful improvement after several quarters of moderation — indicating improving deposit traction. It added that management expects moderation in credit costs to continue, supporting stable profitability.
The brokerage also noted that the bank remains cautious on its retail commercial vehicle (CV) portfolio, where stress levels remain slightly above historical averages. However, asset quality in other segments remains healthy, and management aims to gradually scale up unsecured retail lending once stability is sustained.
UBS believes Kotak’s balanced approach between growth and risk management positions it well for a medium-term re-rating.