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HSBC Upgrades Kotak Mahindra Bank to Buy Citing CEO Clarity and Loan Growth
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CNBC TV18•07-10-2026, 09:53
HSBC Upgrades Kotak Mahindra Bank to Buy Citing CEO Clarity and Loan Growth
- •HSBC upgraded Kotak Mahindra Bank to a 'Buy' rating and raised its price target to 520 rupees per share.
- •The upgrade follows greater clarity on the CEO appointment, alongside expectations of stronger loan growth and earnings per share growth.
- •HSBC increased its EPS estimates by 1 to 14 percent for fiscal years 2027 to 2029, factoring in stable net interest margins.
- •Other major brokerages like Goldman Sachs and Citi also maintained positive views and 'Buy' ratings following strong second-quarter performance and deposit momentum.
Key Questions Answered
HSBC upgraded Kotak Mahindra Bank to a 'Buy' rating and raised its price target to ₹520 per share, citing greater CEO appointment clarity, stronger loan growth, and improved earnings per share growth expectations.
Goldman Sachs reiterated its 'Buy' rating and raised its target price to ₹540 per share, while Citi also retained its 'Buy' call with a target of ₹465, highlighting strong balance-sheet momentum and FCNR(B) deposit mobilisation during the second quarter.
Gross advances grew 24.7% year-on-year and 12.7% sequentially, outperforming brokerages' estimates, while organic loan growth accelerated to 19% compared to 15% in the previous quarter.
