| Company | Value | Change | %Change |
|---|
Citi has revised its price target upward to ₹2,070 from ₹1,940 earlier. This target implies a potential upside of 16% from Wednesday’s closing levels.
Citi wrote in its note that Kotak Mahindra Bank’s sustained loan growth momentum and improved delinquency trends are expected to gather pace.
Credit cost expectations, already factoring in higher levels, are being adjusted for medium-term growth with relatively low beta.
The lifting of regulatory restrictions will serve as a key trigger for the stock’s performance.
The Reserve Bank of India (RBI) had on April 24 last year barred Kotak Mahindra Bank from issuing fresh credit cards and onboarding new customers through online and mobile banking channels over “serious shortcomings” in the bank’s information technology (IT) infrastructure. These are said to have led to frequent outages, including a major disruption on April 15, 2024.
For two consecutive years, the lender was assessed to be deficient in its IT risk and information security governance, the RBI had said. During subsequent assessments, it was non-compliant with corrective action plans issued by the central bank in 2022 and 2023. The compliance statements submitted by the bank were inadequate, incorrect or not sustained.
Out of the 44 analysts that have coverage on Kotak Mahindra Bank, 27 of them have a ‘Buy’ rating, 12 say ‘Hold’, while five of them have a ‘Sell’ recommendation on the stock.
Shares of Kotak Mahindra Bank Ltd. ended 0.11% higher on Wednesday at ₹1,788.10.
