Kotak Mahindra Bank shares drop despite Q1 profit growth
Analysts weigh in on the bank's quarterly results.
1Kotak Mahindra Bank's Q1 performance
Kotak Mahindra Bank reported a 26% increase in net profit for Q1 2027. Net interest income also grew by 9%. While asset quality improved year-on-year, some ratios weakened sequentially. Despite these positive results, the bank's shares fell by 3.5%.
2Developments in asset quality
The bank's net non-performing assets (NPA) decreased by 11% year-on-year but increased by 7.5% quarter-on-quarter. Gross NPA ratio stood at 1.18%, while net NPA ratio was 0.27%. Fresh slippages declined by 27% during the quarter.
3Motilal Oswal maintains 'Buy'
Motilal Oswal reiterated its 'Buy' rating on Kotak Mahindra Bank with a target price of Rs 470, implying a potential 21% upside. Analysts noted that controlled slippages and credit costs supported the bank's performance.
4JM Financial's 'Add' view
JM Financial maintained its 'Add' rating with a target price of Rs 415. It highlighted positive impacts from acquiring Deutsche Bank's India consumer banking business but expected sluggish loan growth to make profitability improvement gradual.
5Dolat Capital's assessment
Dolat Capital noted the bank's quarterly results were in line with expectations, with RoA stable at 2.1%. It set a target price of Rs 455, citing the bank's strong liability franchise and expectations of 15% loan growth.
6Sector overview
The Indian banking sector is seeing some stock declines despite strong quarterly results. Analysts emphasize that Kotak Mahindra Bank's fundamentals remain solid, though market conditions and sector dynamics may cause short-term fluctuations.
Original article: Economic Times — Kotak Mahindra Bank hisseleri kar artışına rağmen düştü