Geojit has given Buy recommendation for Kotak Mahindra Bank with a target price of Rs. 2173 in its research report issued on Jul 28, 2022

Geojit’s research report on Kotak Mahindra Bank

Kotak Mahindra Bank is one of the leading banking and financial groups in India. KMB has 1,700 full-fledged branches and 2,705 ATMs. Net interest income (NII) in 1QFY23 stood at Rs. 6,160cr (up 18.6% YoY and 3.8% QoQ) driven by the strong growth across corporate/ wholesale banking and retail banking segments. Net interest margin improved to 4.92%. Reported PAT grew at 52.6% YoY to Rs. 2,755cr due to a drastic reduction in operating expenses. Sequentially, however, PAT was down 29.2% QoQ, because of lower non-interest income. Strong parentage, well-established business infrastructure, strong asset quality, robust growth in advances, and reduction in NPA auger well for the bank’s performance going forward.

Outlook

Hence, we reiterate our BUY rating on the stock albeit with a revised target price of Rs. 2,173 based on 3.4x FY24E BVPS.

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