Prabhudas Lilladher Recommends 'BUY' on Kotak Mahindra Bank; Sets Rs 500 Target
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Moneycontrol•27-01-2026, 11:51
Prabhudas Lilladher Recommends 'BUY' on Kotak Mahindra Bank; Sets Rs 500 Target
- •Kotak Mahindra Bank (KMB) reported a strong quarter, with core PAT exceeding Prabhudas Lilladher's estimates by 2.3% due to improved asset quality and lower provisions.
- •Net Interest Income (NII) and Net Interest Margin (NIM) were slightly higher despite the impact of increased liquidity.
- •Growth was driven by SME, Business Banking (BuB), housing, and corporate segments.
- •Unsecured stress is declining, leading to a consistent reduction in credit costs from 115bps in Q1FY26 to 73bps in Q3'26.
- •KMB is well-positioned for 15-18% credit growth, supported by strong capital adequacy (21.5% CET-1) and comfortable LDR (85-87%).
Why It Matters: Prabhudas Lilladher maintains a 'BUY' rating on Kotak Mahindra Bank with a target price of Rs 500.
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