Shares of Kotak Mahindra Bank surged 1.88% to ₹1,980.50 as of 9:19 AM, following the Reserve Bank of India’s (RBI) decision to remove supervisory restrictions on the bank’s digital onboarding and credit card issuance.
Stock Performance (as of 9:19 AM)
Kotak Mahindra Bank opened at ₹1,963.00 and touched a new 52-week high of ₹1,987.70, while the day’s low stood at ₹1,960.55. The stock closed at ₹1,943.95 in the previous session. The total trading volume stood at 21,10,741 shares, reflecting heightened investor activity after the RBI’s announcement.
Brokerages bullish, see up to 16% upside
Several brokerages have turned bullish on Kotak Mahindra Bank following the regulatory relief. Morgan Stanley maintained an Overweight rating with a target price of ₹2,290, indicating a 16% upside, citing the potential for a re-rating in profitability. JP Morgan also maintained an Overweight stance with a target of ₹2,100, estimating a 6% upside, and described the RBI’s decision as a major overhang removal. Macquarie assigned an Outperform rating with a target of ₹2,200, seeing an 11% upside, and expects loan growth recovery and margin expansion.
Citi retained a Buy rating with a target of ₹2,070, implying a 5% upside, and believes that the bank will adopt an aggressive credit card expansion strategy. HSBC also issued a Buy rating, raising its target price to ₹2,210, suggesting a 12% upside, and emphasized that Kotak Mahindra Bank will leverage digital channels for customer acquisition. CLSA maintained an Outperform rating with a target of ₹2,125, indicating a 7% upside, and expects a gradual pick-up in unsecured lending. UBS assigned a Neutral rating with a target of ₹2,100, implying a 6% upside, but cautioned that asset quality concerns might slow the pace of recovery. Meanwhile, Bernstein maintained a Market Perform rating with a target price of ₹1,950, slightly below the current market price, citing regulatory risks that still persist in the banking sector.
With the RBI’s restrictions lifted, Kotak Mahindra Bank is expected to accelerate its loan growth, expand its credit card portfolio, and enhance overall profitability. The stock reaching a new 52-week high of ₹1,987.70 reflects strong investor confidence in the bank’s ability to recover lost market share and strengthen its digital banking initiatives.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.
