Brokerages were upbeat on Kotak Mahindra Bank’s prospects after the lender posted strong December quarter earnings.
Kotak Mahindra Bank reported a better-than-expected net profit of Rs 2,131 crore for the quarter-ended December 2021 and a net interest margin of 4.6 percent. What impressed analysts the most was the 18 percent year-on-year and 8 percent sequential growth in loans the bank reported.
“Kotak Mahindra Bank is upbeat on growth not only catching up, but now outpacing peers with broad-based and robust growth in advances,” said ICICI Securities, which upgraded the stock to ‘buy’ from ‘add’ and raised its price target to Rs. 2,451.
CLSA India concurred. It too upgraded shares of the private sector lender to ‘buy’ suggesting that December quarter earnings have reinforced its view that the bank can grow faster than its peers.