Kotak Mahindra Bank (KMB IN) – Analyst Meet Update – Levers in place for better than expected core RoA – BUY
Published on 28 May 2026
We met the MD&CEO and senior management of KMB and key takeaways were (1) bank may continue to grow faster than system without compromising on NIM (2) unsecured growth has resumed but secured growth would not be impeded; unsecured share may increase from ~9% in Mar’26 to 11-11.5% and (3) tech investments would further drive operating efficiency, reducing opex/assets. Bank has de-risked its balance sheet which may not be a negative since despite our flat NIM estimates over FY26-28E, opex/assets & provisions could be lower. LCR at 134% would support growth in a tight credit cycle. With core PAT CAGR of 17%, we expect core RoA to enhance over FY26-28 from 1.76% to 1.85%. We keep multiple at 2.0x on FY28 core ABV and TP at INR 480. Retain ‘BUY’.
