Kotak Mahindra Bank shares rise 4% after strong Q1 business update
Published on 08/07/2025 11:45 AM
Kotak Mahindra Bank shares rise 4% after strong Q1 business updateFor the June quarter, Kotak Mahindra Bank's loan growth remained strong. Deposit growth was broadly in line with Street estimates.By Meghna Sen July 8, 2025, 11:45:07 AM IST (Published)2 Min ReadShares of Kotak Mahindra Bank surged more than 4% on Tuesday, July 8, after the lender's June quarter business update impressed investors.
The bank's total advances rose 14% year-on-year and 4.2% quarter-on-quarter to ₹4.45 lakh crore. Period-end deposits also showed healthy growth, rising 14.6% YoY and 2.8% QoQ to ₹5.13 lakh crore.
However, current and savings account (CASA) deposits declined 2.2% QoQ, though they were up 7.9% YoY. The CASA ratio fell to 41% from 43% in the fourth quarter of FY25.
Loan growth remained strong, outpacing overall system growth and exceeding expectations. Deposit growth was broadly in line with market estimates. As a result, the credit-to-deposit (CD) ratio rose to 86.7% from 85.5% in Q4FY25.
Analysts at brokerage firms reacted positively to the update. Morgan Stanley maintained its 'Overweight' rating on Kotak Mahindra Bank with a price target of ₹2,650.
It said that the bank showed strong growth despite a muted macroeconomic environment, with balance sheet expansion driven by robust lending.
Morgan Stanley also said that average deposit growth remained strong at 5% QoQ and 13% YoY, although CASA growth was softer at 2% QoQ and 4% YoY.
Jefferies has a 'Buy' rating on the stock with a price target of ₹2,550.
It said the bank delivered healthy loan growth of 14% YoY and 4% QoQ. While period-end CASA deposits fell 2% QoQ, Jefferies said they remained steady on an average basis, contributing to a 15% YoY rise in total deposits.
Shares of Kotak Mahindra Bank are trading 3.03% higher on Tuesday at ₹2,211.95. On a year-to-date basis, the stock has climbed 24%.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagskotak bankKotak Mahindra BankKotak Mahindra Bank Shares