Kotak Mahindra Bank Share Price Target 2026: Brokerage firm Nuvama has maintained its Hold call on Kotak Mahindra Bank’s stock two days after the lender’s board has approved a proposal to acquire, by way of assignment, the loan portfolio and non-treasury investments, aggregating to an outstanding amount of Rs 10,639 crore as on March 31, 2026, in one or more tranches, from Kotak Mahindra Investments Ltd (KMIL).
Kotak Mahindra Bank’s MD and CEO Ashok Vaswani indicated that the bank has moved past regulatory/management overhang and reiterated to grow at 1.5–2x nominal GDP, Nuvama said in a note.
Created with AI. Errors are possibleWhile rising funding cost could pressurise near-term margins, there are no signs of impact on portfolio quality so far. The bank stays open to value-accretive acquisitions, implying IDBI acquisition may not be on the cards, the note added.
Nuvama has maintained its Hold rating on Kotak Mahindra Bank’s stock with a target price of Rs 430.
“We assume coverage at ‘HOLD’ with TP of INR430/share (implying 1.7x standalone FY28E ABV + subsidiaries/inv. value at INR145/share) factoring in pickup in RoA to 2% (best-in-class among peers ex-ICICI) in FY27–29E led by better operating leverage and LLP; we believe easing concerns on potential IDBI acquisition warrant better valuations,” the brokerage said in its note.
“Management believes stress in unsecured retail loans is largely behind, which reflected in lower slippages in Q4FY26. Moreover, KMB has largely scaled-up its specific PCR to 79% from sub-70% in pre-Covid era, thereby calling for lower incremental provisions and hence shall drive down LLP (versus 0.8% in FY26). Though management stays vigilant, there are no signs of fresh stress yet due to West-Asia conflict. The bank clarified it does not plans to build any contingent provision buffer unlike some large peers given strong capital buffers while ECL transition impact is likely to be lower at 2% of NW versus industry. Furthermore, management believes that though cost/assets ratio has come down to 2.7% in FY26 from 2.9–3% over FY23–25, they have further scope to improve and hence should support RoA expansion even if margins come under a bit of pressure,” the note added.
Kotak Mahindra Bank has reported a 10 per cent rise in consolidated net profit to Rs 5,423 crore for the fourth quarter of 2025-26, on the back of lower provisions and better net interest income.
In the year-ago period, the profit stood at Rs 4,933 crore. On a standalone basis, it reported a 13 per cent year-on-year rise in net profit to Rs 4,027 crore.
Core net interest income of the bank increased 8 per cent to Rs 7,876 crore from Rs 7,284 crore a year ago.
Net interest margin (NIM) improved to 4.67 per cent from 4.54 per cent in the December quarter. However, it fell on a yearly basis, from 4.97 per cent in Q4FY25.
Devang Gheewalla, group chief financial officer of the bank expects margins to remain rangebound going ahead. “It (NIM) will be range-bound. It will not be as sharp as the current year, but will be more gradual in the next year,” Gheewalla said during the post-policy press conference.
Net advances increased 16 per cent year-on-year to Rs 4.96 lakh crore as on March 31, 2026, from Rs 4.27 lakh crore in a similar period last year.
Customer Assets which comprise advances (including IBPC & BRDS) and credit substitutes grew to Rs 5.46 lakh crore as at March-end 2026 from Rs 4.78 lakh crore a year ago.
Total period-end deposits grew 15 per cent year-on-year to Rs 5.73 lakh crore in Q4FY26. Average total deposit too rose 15 per cent to Rs 5.38 lakh crore. Average current deposit was higher by 18 per cent at Rs 77,058 crore during the quarter.
The asset quality of the bank improved in the reporting quarter with gross non-performing assets (NPA) ratio falling to 1.20 per cent as on March 31, 2026, from 1.42 per cent as on March 31, 2025.
