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Kotak Mahindra Bank shares gain after Nomura upgrades, sees 25% upside — Check its top bets.Nomura has upgraded its rating on Kotak Mahindra Bank to 'buy' with a target price of ₹445 per share, an upside potential of 24.8%.By Shloka Badkar  March 24, 2026, 12:36:15 PM IST (Published)2 Min ReadShares of Kotak Mahindra Bank Ltd. gained close to 3% on Tuesday, March 24, after brokerage firm Nomura upgraded its rating on the stock, while expressing some caution for the banking sector as a whole.

Nomura upgraded its rating on Kotak Mahindra Bank to "buy" from its earlier rating of "neutral" and marginally tweaked its price target to ₹445 from ₹460 earlier. The revised price target also implies a potential upside of close to 25% from Monday's close.

For the banking sector, Nomura said improvement in system credit growth from 10% to 14.9% from the previous year since mid-2025 has been built on borrowed time.

It said that this acceleration has been funded by banks drawing from liquidity buffers, not by strong deposit mobilization, with system credit-deposit (CD) ratio rising to 82% from the 10-year average of 75% and liquidity coverage ratios (LCRs) declining across the board.

As these buffers moderate, the sustaining credit growth will require deposit growth to pick-up, Nomura said.

The two key enablers for the same currently are government spending and forex inflows. Both are currently running below what is needed, according to Nomura.

Meanwhile, funding costs are rising despite policy easing, as structural gap between credit and deposit growth keeps marginal funding costs elevated, Nomura added.

It has revised its net interest margin (NIM) estimates lower across the banking sector.

Kotak Mahindra Bank joins Axis Bank and ICICI Bank, as the brokerage's top bets within the private banking space.

Shares of Kotak Mahindra Bank gained 3% to hit an intraday high of ₹367.65. The stock was up 2.4% at ₹364.95 apiece around 11.56 pm. It has declined 14.4% in the past month.

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