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Kotak Mahindra Bank Shares Rise on Strong Q2 Growth
Kotak Mahindra Bank shares went up after the bank reported strong loan and deposit growth for the September quarter.
Its net advances, or money lent to customers, rose 24.7% from a year earlier.
Deposits increased 23.2%.
Some of the growth was linked to foreign-currency deposits collected under an RBI swap facility.
Citi and Goldman Sachs both kept Buy ratings on the shares.
Citi set a target price of ₹465, and Goldman Sachs raised its target to ₹540.
Citi also noted that the share of lower-cost current and savings account deposits fell compared with the previous quarter.
The bank's shares were trading at ₹431.30 by 10:40 a.m.
Tuesday.
Kotak Mahindra Bank shares rose 3.68% to ₹431.30 on the NSE by 10:40 a.m. Tuesday.
September-quarter net advances increased 24.7% year on year to ₹5,77,094 crore.
Total deposits grew 23.2% year on year to ₹6,51,491 crore, partly supported by FCNR(B) inflows.
Citi maintained a Buy rating with a ₹465 target, while Goldman Sachs kept Buy and raised its target to ₹540.
Citi said average CASA eased about 140 basis points quarter on quarter to 37.4% as term deposits expanded.
- Who
- Kotak Mahindra Bank and its shareholders; analysts at Citi and Goldman Sachs commented on the stock.
- What
- The bank reported strong provisional September-quarter loan and deposit growth, and its shares rose.
- Where
- Shares traded on the NSE; the bank filed its data with the BSE and NSE.
- When
- The share move was reported on Tuesday, October 6, 2026; the data covered the September 2026 quarter.
- Why
- The report linked the share rise to the bank's strong loan and deposit figures.
Growth and outlook
Funding mix and qualifications
Loan growth
Growth and outlook
Citi said advances growth of 24.7% was well ahead of its 20.9% estimate; excluding FCNR(B)-linked exposure, it estimated core loan growth at 21.6%, driven by corporate banking, SME, LAP and MFI.
Funding mix and qualifications
The reported advances included $1.68 billion, approximately ₹16,110 crore, of corresponding lending from international branches linked to FCNR(B) deposits.
Deposit composition
Growth and outlook
Total deposits grew 23.2% year on year and 13.7% quarter on quarter.
Funding mix and qualifications
Citi said the average CASA ratio fell about 140 basis points quarter on quarter to 37.4%, reflecting an expanded term-deposit base following FCNR inflows.
Key facts
- Share price
- ₹431.30 on the NSE at 10:40 a.m. Tuesday, up 3.68% from Monday's close of ₹416.
- Net advances
- ₹5,77,094 crore at quarter-end; up 24.7% year on year and 12.7% quarter on quarter.
- Total deposits
- ₹6,51,491 crore; up 23.2% year on year and 13.7% quarter on quarter.
- FCNR(B) deposits
- $5.78 billion, approximately ₹55,344 crore, mobilised under the RBI's swap facility.
- Citi target
- Buy rating maintained; target price ₹465.
- Goldman Sachs target
- Buy rating retained; target raised to ₹540 from ₹509.
- Average CASA ratio
- 37.4%, down roughly 140 basis points quarter on quarter, according to Citi.
Sources
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