Kotak Mahindra Bank shares gain over 4%, hit highest level since April 2025; here’s what you should know
A Ksheerasagar
Kotak Mahindra Bank shares settled with a 4.3% gain in Thursday’s trade on October 29, closing at R 459 apiece, their highest level since April 2025, amid a broader rally in banking stocks. The rally also marked the stock’s biggest single-day gain in over a year, offering some relief to the lender’s shares, which have been under pressure lately.
Meanwhile, the Delhi High Court has directed major social media platforms, including Meta, Google, Telegram, X, and LinkedIn, to remove hundreds of fraudulent accounts impersonating Kotak Mahindra Bank and Kotak Securities and share details that could help identify the operators with the bank, as per the Business Line.
According to the report, the court also directed the Ministry of Electronics and Information Technology (MeitY) and the Department of Telecommunications (DoT) to issue blocking notifications to internet and telecom service providers against the infringing URLs listed in the annexures to the order.
On Saturday, the bank reported a 26% jump in consolidated net profit for the September quarter at ₹5,645 crore. On a standalone basis, the private sector lender reported a 29% increase in profit after tax at ₹4,212 crore, aided by core income growth and a decline in provisions.
Its core net interest income was up 16% to ₹8,459 crore, helped by a 25% jump in net advances and constrained by a 0.23% compression in Net Interest Margin (NIM).
Mobilisation of ₹55,344 crore of FCNR(B) deposits under the RBI's concessional swap facility led to NIM compression during the reported quarter.
The bank said that loans aggregating to ₹16,110 crore were disbursed as part of the FCNR(B) scheme, which also allowed for leveraged borrowing against deposits.
From an asset quality perspective, the bank reported a decline in slippages at ₹1,230 crore in the reporting quarter as against ₹1,629 crore in the year-ago period, and the gross non-performing assets ratio improved to 1.04 per cent as against the year-ago period's 1.39 per cent.
The Capital Adequacy Ratio was at 21.9%, including the core Common Equity Tier 1 (CET1) buffer at 21.4% as of September 30, 2026.
Domestic brokerage firms including Axis Securities, JM Financial, and Systematix Institutional Equities have retained their bullish outlooks on the stock following the lender’s September-quarter results, with target prices of ₹550, ₹500 and ₹510, respectively.
Axis Securities maintained its 'buy' recommendation, valuing the bank’s core book at 2.2 times its September 2028 estimated adjusted book value (ABV) and assigning ₹140 per share to its subsidiaries. This translates into a target price of ₹550, implying an upside of 28% from the current market price.
JM Financial upgraded the stock to 'buy' from its earlier rating and raised its target price to ₹500 from ₹415. The brokerage also increased its FY27 and FY28 earnings per share estimates by 5% and 7%, respectively.
Systematix Institutional Equities maintained its buy rating and raised its target price to ₹510 from ₹475, factoring in strong advances, growth, and margin movements. It valued the standalone bank at two times its FY28 estimated adjusted book value per share of ₹173 and assigned ₹161 per share to its subsidiaries and associates.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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