Kotak Mahindra Bank shares soar to record high amid improving growth prospects, earnings expectations
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Mumbai: Kotak Mahindra Bank shares hit a record high Thursday, extending a rally driven by improving growth prospects and expectations of stronger earnings. The stock has gained nearly 10% in October so far, its strongest monthly performance since March 2025, and nearly 30% since the beginning of April.The shares closed at ₹457 on the BSE, up 3.86% from the previous close, after touching an intraday high of ₹460 a share. Kotak underperformed between 2021 and 2024, delivering largely flat returns, before gaining 25% in 2025. The stock is up around 7% so far in 2026.135336773Analysts expect earnings to improve, supported by credit growth, the deployment of funds raised through foreign currency non-resident (FCNR(B)) deposits and the transmission of higher lending rates. Improving asset quality, lower credit costs and better cost ratios are also expected to support profitability.Read more: Trent Q2 Results: Cons profit jumps 25% YoY to Rs 468 crore; revenue climbs 22%Axis Securities expects Kotak Mahindra Bank to deliver a return on assets of 2.1-2.2% and a return on equity of 12-14% over FY27-29. These metrics would rank second among large private sector banks, after ICICI Bank, the brokerage said. Siddharth Rajpurohit, lead analyst for banking and non-lending financials at Systematix Institutional Equities, attributed the bank's performance to a recovery in growth, easing credit costs and stable core margins.Read more: Market Trading Guide: Eternal among 2 stocks to buy for Friday for healthy returns"Growth is back for the bank. Growth in advances and deposits has picked up, while credit costs are coming down significantly," he said.
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