Kotak Mahindra Bank share price soars over 4% to 10-week high on strong Q1 business update

Kotak Mahindra Bank share price in focus: Shares of Kotak Mahindra Bank, one of India’s leading private sector banks, jumped 4.26% to hit a 10-week high of ₹2,241 apiece in early trade on Tuesday, July 08, following the release of the June quarter business update, which showed a steady performance in the deposit and loan growth, even as gains in low-cost deposits moderated.

The bank, through an exchange filing on Monday, released its June quarter update, reporting a 14% YoY and 4.2% QoQ growth in lending to ₹4.45 lakh crore. The bank’s loan book at the end of the March quarter stood at 4.27 lakh crore, and the same was at ₹3.90 lakh crore in Q1FY25.

It also reported a healthy 14.6% growth in deposits, reaching ₹5.13 lakh crore. On a sequential basis, deposits were up 2.8% from ₹4.47 lakh crore at the end of March quarter. Average total deposits came in at ₹4.92 lakh crore, rising nearly 13% YoY and 5% sequentially.

The average CASA stood at ₹1.92 lakh crore, reflecting a year-on-year (YoY) growth of 4.2% and a quarter-on-quarter (QoQ) increase of 2.1%. CASA on an end-of-period (EOP) basis declined 2.2% sequentially to ₹2.09 lakh crore, though it rose 7.9% compared to the same period last year.

Following the bank’s healthy update, both Morgan Stanley and Jefferies have retained their optimistic view on the stock, citing the lender’s robust balance sheet expansion and resilience in its low-cost funding profile.

Morgan Stanley has maintained an Overweight rating on the lender with a target price of ₹2,650 per share, while Jefferies has reiterated its Buy call with a target price of ₹2,550.

Stock up over 24% in 2025, highest among private peers

Shares of the private sector lender have gained sharply in the current year, rising nearly 25% from ₹1,779 apiece to the current trading level of ₹2,229. The rally has added around ₹1.10 lakh crore to the company’s market capitalisation, which now stands at ₹4.43 lakh crore.

In April, the stock hit a fresh all-time high of ₹2,301.90, surpassing its previous record of ₹2,202.

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