Kotak Mahindra Bank 1QFY27: Soft on NIMs and growth

Research evidence excerpt

Kotak Mahindra Bank 1QFY27: Soft on NIMs and growth

Nomura | Kotak Mahindra Bank 20 July 2026

Company profile

Kotak Mahindra Bank (‘KMB’) is one of India's leading banking and financial services group, offering a wide range of financial services that

encompass every sphere of life. KMB has transformed from an NBFC (non-banking financial company) into one of the fastest growing banks in India

after obtaining a banking license in 2003. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution

of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides

working capital loans. Kotak has one of the largest and most respected Wealth Management teams in India, providing the widest range of solutions

to high net worth individuals, entrepreneurs, business families and employed professionals. Over the years, it has entered various financial service

businesses, such as securities, investment banking, life insurance, asset management and retail banking and has become a leading player in

domestic capital markets.

Valuation Methodology

We derive our TP of INR460 for KMB, valuing the core bank at 1.8x Mar-28F BVPS (using a 2-stage Gordon Growth model), and the subsidiaries at

INR160/sh. The benchmark index for the stock is Nifty 50.

Risks that may impede the achievement of the target price

Downside risks: 1) sharper moderation of NIMs, 2) asset quality deterioration, and 3) softer loan and deposit growth.

ESG

Environmental aspects are constantly monitored across the Bank’s large offices to keep its carbon footprint in check, even while the expansion of

business.