Kotak Bank Share Price Soars 9% After Strong Q3 FY25 Results and Analyst Upgrades

Kotak Bank Share Price

Shares of Kotak Mahindra Bank Ltd rallied over 9% on January 20, following strong Q3 FY25 results, prompting multiple upgrades by analysts. The bank reported a 10% year-on-year rise in net profit, a 7% sequential decline from Rs 5,044.05 crore in Q2 FY25. Interest income grew 14.75% to Rs 16,633.14 crore as against Rs 14,494.96 crore in Q3 FY24.

Kotak Mahindra Bank demonstrated stable asset quality, with delinquencies in personal loans easing and credit card portfolio stabilising, although delinquencies in microfinance trended upward. The bank reported healthy loan and deposit growth of 15% and 16%, respectively, amid a challenging macroeconomic environment.

Brokerages responded positively, highlighting the bank’s strong operational performance, efficiency, and resilience. Nuvama Institutional Equities upgraded its rating from ‘sell’ to ‘buy’, citing growth, quality, and strong Q3 results, and set a target price of ₹2,040.

DAM Capital also issued a similar upgrade, and set a target price of ₹2,020, while Jefferies raised its target to ₹2,200. Nomura Holdings maintained a ‘buy’ rating, but revised its target to ₹2,110, and Emkay Global reiterated its ‘reduce’ rating, and raised its target price to ₹1,750.

Kotak Mahindra Bank’s net interest margin (NIM) remained stable at 4.9%, supported by a decline in funding costs. Analysts also noted improved operational efficiency, lower slippages, and resilience despite restrictions on card issuance by the RBI. The anticipated reversal of this restriction, along with enhanced digital customer onboarding capabilities, is expected to further boost growth in the near future.

At 9:20 am, Kotak Mahindra Bank shares were trading at ₹1,903.6 on the NSE, reflecting a rise of 8.3%. Analysts believe the bank to be a strong performer in a sector that is grappling with macroeconomic challenges and weak deposit growth.

Also Read: Vodafone Idea Shares Surge 15% Amid AGR Relief Hopes Ahead of Union Budget 2025