Brokerages remain optimistic on Kotak Mahindra Bank after a recent meeting with the bank’s top management, highlighting strong growth visibility, improving efficiency, and a stable balance sheet. Analysts have maintained a “Buy” rating on the stock with a target price of ₹480.
According to the management, the bank is confident of continuing to grow faster than the overall banking system without putting pressure on Net Interest Margins (NIMs). Despite industry-wide concerns around liquidity and competition, Kotak Mahindra Bank believes its strong balance sheet and healthy liquidity coverage ratio (LCR) of 134% will support sustained credit growth.
The bank also indicated that growth in unsecured lending has resumed, while secured lending will continue to remain strong. Management expects the share of unsecured loans to rise from nearly 9% in March 2026 to around 11–11.5% over the coming years, reflecting improving confidence in retail credit demand.
Another key focus area remains technology investments. Kotak Mahindra Bank plans to continue investing heavily in digital infrastructure and automation, which is expected to improve operating efficiency and reduce operating expenses relative to assets over time.
Analysts believe the bank’s de-risked balance sheet positions it well for the future. Even with flat NIM estimates for FY26–FY28, lower provisioning costs and improving operational efficiency could drive better profitability. Core Profit After Tax (PAT) is expected to grow at a CAGR of 17%, while core Return on Assets (RoA) may improve from 1.76% to 1.85% during FY26–FY28.
With improving fundamentals, strong liquidity, and efficient execution, Kotak Mahindra Bank continues to remain a preferred pick in the private banking space.