Macquarie has maintained its neutral rating on Kotak Mahindra Bank with a target price of ₹2,200 per share after the bank’s Q2FY26 results showed steady operating performance despite treasury-related headwinds.
The brokerage said the core pre-provision operating profit (PPOP) was in line with expectations, while the reported profit after tax (PAT) miss was primarily due to treasury losses. Credit costs declined as lower slippages and stronger recoveries supported asset quality improvement.
Macquarie noted that the decline in margins was in line with expectations, reflecting deposit repricing pressure. However, management commentary remained upbeat, with the bank expecting margin improvement in the coming quarters driven by the repricing of term deposits, growth in unsecured loan segments, and the benefit of the recent CRR cut.
The brokerage said Kotak’s fundamentals remain strong, but near-term valuation re-rating is unlikely until NIM stabilises.
