Buy Kotak Mahindra Bank; target of Rs 2570: ICICI Securities

ICICI Securities is bullish on Kotak Mahindra Bank has recommended buy rating on the stock with a target price of Rs 2570 in its research report dated July 27, 2025.

Broker Research

July 29, 2025 / 15:11 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Kotak Mahindra Bank

Kotak Mahindra Bank (KMB) reported weak Q1FY26 PAT of INR 32.8bn (~6% miss), pulled down by ~32bps QoQ decline in NIM and rise in credit costs. Loan growth was strong at ~4% QoQ (~14% YoY), though was led by corporate (up 11% QoQ) while retail unsecured declined. Despite a sharp cut in its savings rate (down ~45bps QoQ), cost of funds eased only marginally. Contained opex (-4% QoQ) drove a 2% beat on PPOP and seems to be a potent lever to offset slower revenue growth in the near term. Slippages jumped QoQ, though stemming predominantly from retail CV and seasonality in rural portfolio,

Outlook

While PL / credit card stress is stabilising and MFI stress seems peaked. Growth focus remains intact with unchanged aspiration to grow unsecured retail share to ~15%. Retain BUY; TP revised to INR 2,570.

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