Kotak Mahindra Bank shares rise 2% as HSBC upgrades stock to buy
The lender’s shares advanced after HSBC cited improving growth prospects, while recent developments supported a more constructive view on earnings.
Kotak Mahindra Bank's shares experienced a 2% increase in Wednesday's trading session, driven by sectoral factors such as the recent repo rate hike by the Reserve Bank of India (RBI). The stock reached a peak of ₹440.70 on the National Stock Exchange (NSE), up from its previous close of ₹431.90. As of 12:37 pm, the share price stood at ₹439.40. In response to this positive movement, HSBC upgraded the bank's stock to "Buy" and increased its target price from ₹430 to ₹520.
HSBC's upgrade was prompted by the appointment of a new CEO and a more optimistic outlook on loan growth and earnings per share (EPS). The investment bank raised its EPS estimates for FY27-29 by 1-14% due to anticipated stronger loan growth and a stable net interest margin (NIM). HSBC also noted that the RBI's recent decision to increase the repo rate could present an upside risk for Kotak Mahindra Bank.
The bank's net advances in the second quarter of fiscal year 2026 reached ₹5,77,094 crore, a 24.7% increase compared to the previous year. Total deposits stood at ₹6,51,491 crore, marking a 23.2% year-on-year growth. Furthermore, the Cost to Service Assets Ratio (CASA) deposits increased by 11.3% compared to the previous year.
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