HSBC has maintained a ‘Buy’ rating on Kotak Mahindra Bank’s stock.

Kotak Mahindra Bank Stock Price: The stock of private sector Kotak Mahindra Bank saw a 2.5% rise on February 13, reaching a high of ₹1,992 on the BSE. By the end of the trading day, the stock settled at ₹1,971.60, marking an increase of over 1%. On February 12, the Reserve Bank of India (RBI) lifted the restrictions imposed on Kotak Mahindra Bank. This means the bank can now add new customers through online and mobile banking channels and issue new credit cards. The RBI had imposed these restrictions on April 24, 2024.

Analysts believe that this could lead to a re-rating of the bank’s stock valuation. Global brokerage firm CLSA has given Kotak Mahindra Bank’s stock an ‘Outperform’ rating, with a target price of ₹2,125 per share, which is 8% higher than the closing price on February 13. CLSA stated that the RBI’s decision is emotionally positive but does not impact the bank’s earnings per share (EPS). Since the restrictions were imposed, Kotak’s market share in credit card spending and loans has dropped by 50 basis points to 4%.

The overall impact on loan growth was less than 1%, and the effect on Q3 EPS was between 2%-3%. CLSA expects Kotak to acquire customers in a specific manner while considering the broader macroeconomic environment.