Kotak Bank Shares Crash: Kotak Mahindra Bank shares crash, know the complete strategy before investing?

Business Desk – Kotak Bank Shares Crash: Shares of Kotak Mahindra Bank, a leading private sector lender, suffered a major blow today. Despite the strong performance in the quarter ending March 2026, this was due to improvement in asset quality and reduction in credit costs. Because of this the shares fell rapidly.

However, brokerage firms are still bullish on the stock, making the current decline a great buying opportunity. Currently, this stock is trading at Rs 375.05 on BSE, which is down 1.99%. During intraday trading it fell by 5.14% to reach a low of Rs 363.00.

What is the brokerage’s view on Kotak Mahindra Bank?

Bernstein

Brokerage firm Bernstein has given “Market Perform” rating to Kotak Mahindra Bank. Target price has been fixed at Rs 500. The firm said that FY26 was a strong year for the bank, which saw improvements across the board on key operational fronts. The bank’s net interest margin (NIM) grew by 13 basis points quarter-on-quarter, the highest among leading private banks, while credit costs declined by 39 basis points due to improvement in asset quality.

In the March quarter, bank loans increased by 16% on a year-on-year basis. Additionally, effective control over operating expenses helped mitigate the impact of weak non-interest income, thereby supporting the bank’s return ratios. However, the return on equity (RoE) of 12.3% still lags behind its peers, mainly due to the bank’s high capital buffers.

ubs

Citing better-than-expected earnings, UBS has given Kotak Mahindra Bank a “Buy” rating, with a target price of Rs 500. The bank’s profits increased due to strong pre-provision operating profits and reduction in credit costs. On a sequential basis, the bank’s loans grew by 3.2% and deposits by 5.5%, while the CASA ratio saw an improvement of 200 basis points.

The brokerage firm believes the risk-return profile at the current valuations is favorable, supported by expectations of rapid growth in operating profits, stable margins and improvement in the non-lending business. The firm also said that the impact of credit loss transition is likely to be less than 2% of the bank’s net worth.

JPMorgan

JPMorgan has given ‘overweight’ rating to Kotak Mahindra Bank. Target price has been fixed at Rs 476. The bank’s net interest income grew by 8.1% year-on-year for the quarter ended March 2026, which is one of the fastest growth rates in its peer group. Reported margins witnessed an increase, mainly due to day-count benefits. However, non-interest income remained under pressure due to slowdown in card growth and reasons related to treasury operations.

Nomura

Citing strong margins and strong improvement in asset quality, brokerage firm Nomura has issued a ‘Buy’ rating for Kotak Mahindra Bank with a target price of Rs 460. The firm has raised the bank’s earnings estimates by 2% for FY27–28 on the back of better cost control and falling credit costs.

Nomura estimates that by FY28, the bank’s Return on Assets (RoA) will reach around 2%. Its Return on Equity (RoE) will reach 12%. Also, earnings are expected to grow at an annual pace of about 18% during the period FY27–28.

Jefferies

Better-than-expected profit growth underpinned by lower provisioning. Brokerage firm Jefferies has given ‘Buy’ rating to Kotak Mahindra Bank, with a target price of Rs 450. On one hand the loan growth of the bank was good. On the other hand, its deposits and CASA growth also remained strong.

Apart from this, during the March quarter many segments including microfinance and credit cards. Asset quality improved. However, given some pressure on margins due to higher deposit costs, the brokerage firm has cut the bank’s earnings estimates by 3–4%.