Following a stable performance in the June quarter business update, which showed consistent pace in both lending and deposit growth even as gains in low-cost deposits moderated, Kotak Mahindra Bank’s shares increased by as much as 4% to Rs 2,238 on July 8. As of June 30, 2025, the private lender’s loan book had grown to Rs 4.45 lakh crore, a 14% increase from Rs 3.90 lakh crore the previous year. Advances increased 4.2% sequentially from Rs 4.27 lakh crore at the end of March. Additionally, deposits kept growing at a steady rate. End-of-period deposits increased by 2.8 percent above the March quarter number of Rs 4.99 lakh crore and by 14.6 percent year over year to Rs 5.13 lakh crore. At an average of Rs 4.92 lakh crore, total deposits increased by about 13 percent year over year and 5 percent sequentially. However, there was only a slight increase in deposits into low-cost current and savings accounts (CASAs). At Rs 1.92 lakh crore, average CASA deposits increased 2.1 percent QoQ and 4.2 percent YoY. Although it decreased 2.2 percent sequentially to Rs 2.10 lakh crore, the end-of-period CASA was still 7.9 percent more than the level from the previous year.
With a target price of Rs 2,650 per share, Morgan Stanley has maintained an Overweight rating on the lender in the wake of the news, indicating a 23 percent increase from the previous closing. Despite a weak macroeconomic climate, the brokerage reported that the lender’s first-quarter business update showed robust growth. Even if more general system-level trends remained muted, it emphasized the bank’s strong balance sheet increase. With average deposit growth of 5% on a quarterly basis and 13% on an annual basis, it was especially robust.
Reiterating its buy recommendation for the stock, Jefferies has set a target price of Rs 2,550. During the June quarter, the company reported a robust 14 percent year-over-year and 4 percent sequential increase in loan growth. With CASA included, total deposit growth improved to 15% annually. According to Jefferies, the average CASA base stayed steady despite a 2 percent QoQ decline in end-of-period CASA deposits, demonstrating the bank’s low-cost funding profile’s durability. The lender’s shares were trading at Rs 2,228 at around 9:20 am, up 3.6% from the previous close on the NSE. Since the start of the year, Kotak Mahindra Bank’s stock has increased by more than 20%.