UBS has maintained a ‘Neutral’ rating on Kotak Mahindra Bank (KMB), raising its target price to ₹2,100 per share from ₹1,950, reflecting a moderately optimistic outlook post the lifting of RBI’s restrictions.
Key takeaways from the report:
- The lifting of the embargo is expected to support loan and fee growth, providing a much-needed boost to business expansion.
- Kotak Mahindra Bank lost 130 basis points (bps) of market share in 9MFY25, reflecting the impact of regulatory restrictions.
- The bank now has enhanced flexibility in acquiring new deposit customers, which should aid in reviving growth momentum.
- Growth acceleration is expected to be gradual in H1FY26, as asset quality concerns remain a key focus area.
- UBS has raised its FY26-27 EPS estimates by 3-4%, factoring in the business normalization and improved growth outlook.
While Kotak Mahindra Bank stands to benefit from renewed customer acquisition and lending expansion, UBS maintains a neutral stance due to market share losses and near-term asset quality risks.
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.
