Kotak Mahindra Bank
Kotak Mahindra Bank is a private-sector lender that, with its banking and non-banking subsidiaries, runs loans, deposits, insurance distribution, asset management and broking across India.
- P/E ~20-21x
- Results due Oct 24
- New CEO from Jan 2027
- Loan growth outpacing NII
- Near 52-wk high
Updated on 14 Oct 2026 · Data as of 13 Oct 2026
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Snapshot
- Share price
- ₹439.00
- 13 Oct 2026
- 52-week range
- ₹352.79 – ₹444.35
- All-time peak
- ₹452.46
- 22 Apr 2025 · −3.0% from peak
- Dividend yield
- 0.15%
- Price history since
- 2001
- About 25 years of prices
What's happening
Board results for Q2 FY27 are due on 24 October 2026 - within the next two weeks. A provisional operating update (5 October 2026) showed advances up 24.7% YoY to ₹5.77 lakh crore and deposits up 23.2% YoY to ₹6.51 lakh crore. Separately, the RBI cleared Anup Kumar Saha as the next MD & CEO (three-year term from 1 January 2027, succeeding Ashok Vaswani) on 30 September 2026, and the stock rose about 4% on the news as it removed a succession overhang.
In plain terms
The stock has rallied hard lately - up 16% in three months while the Nifty fell - helped by the CEO succession finally being settled and strong loan growth. But look at the quarter underneath: loans grew nearly 25% while the interest income the bank actually earned (NII) grew only 9%. That gap usually means the bank is lending more but earning a thinner spread on each rupee lent - growth by volume, not by margin. Bad loans are shrinking, which is genuinely good, but the market is paying a premium price (~20x earnings) for a bank whose returns on equity are middling for that multiple.
Quarters
Q1 FY27 (June quarter, reported July 2026): standalone net profit rose to ₹4,123 crore from ₹3,282 crore a year earlier (about +26%); standalone NII grew only 9% to ₹7,928 crore. Consolidated PAT was ₹5,480 crore versus ₹4,472 crore (+22.5%), consolidated NII up 9% to ₹11,266 crore. Gross NPA improved to 1.18% from 1.48%, net NPA to 0.27% from 0.34%, and capital adequacy stood at a strong 22.78%. The provisional Q2 FY27 update (advances +24.7% YoY, deposits +23.2% YoY, CASA +11.3% YoY) is operational data only - the full profit and margin picture, including whether the NII-vs-loan-growth gap persists, comes with the board's results on 24 October 2026.
Performance
Heads-up on splits: Kotak Mahindra Bank has split its shares or issued bonus shares before (most recently 5-for-1 on 14 Jan 2026, 2-for-1 on 8 Jul 2015 and 2-for-1 on 13 Sept 2010). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
+2.2% over 1 year
Stock split
Returns by period
| Period | Kotak Mahindra Bank | Nifty 50 | Axis Bank |
|---|---|---|---|
| 3 months | +16.1% | −5.5% | −3.7% |
| 1 year | +2.2% | −9.9% | +6.7% |
| 3 years | +25.9% | +15.2% | +26.5% |
| 5 years | +9.8% | +25.1% | +60.4% |
₹100 invested on 13 Oct 2021 became…
- Kotak Mahindra Bank₹110
- Nifty 50₹125
- Axis Bank₹160
The stock is close to its 52-week high (₹444.35) and only about 3% below its April 2025 peak of ₹452.46, after a sharp 3-month rally (+16.1% vs Nifty -5.5% and peer Axis Bank -3.7%). But stretch the lens: over 1 year the stock is up just 2.2% (beating a falling Nifty but trailing Axis Bank's 6.7%), and over 5 years it is up only 9.8% - badly behind the Nifty's 25.1% and Axis Bank's 60.4%. That five-year gap is the uncomfortable number: a 'quality' private bank has delivered close to flat real returns while its closest listed peer has nearly tripled the index. Note the January 2026 5:1 stock split (face value ₹5 to ₹1) was a pure arithmetic split - five shares for one, no value transferred away - so it does not explain or distort any of this underperformance; it is unrelated to the weak long-run return.
Dividend
Paid in the last 12 months
₹0.65 per share
Dividend yield
0.15%
Dividend yield is the last 12 months of dividends divided by today's share price. A 0.1% yield means every ₹100 of Kotak Mahindra Bank shares paid about ₹0.1 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 17 Jul 2026 | ₹0.65 |
| 18 Jul 2025 | ₹0.50 |
| 19 Jul 2024 | ₹0.40 |
| 4 Aug 2023 | ₹0.30 |
| 11 Aug 2022 | ₹0.22 |
| 11 Aug 2021 | ₹0.18 |
| 12 Jul 2019 | ₹0.16 |
| 11 Jul 2018 | ₹0.14 |
Valuation
Kotak trades around 20-21.6x trailing earnings and roughly 2.3-2.4x book value, versus a private banking sector median P/E near 15x - a clear premium. Why: the market has historically paid up for Kotak's conservative underwriting, low NPAs and high capital buffers. Whether that premium is justified is less clear - reported ROE in the 10.6-11.9% range (sources vary slightly) is respectable but not exceptional for the multiple being paid, and well below the 20%+ ROE era when Kotak traded at 3-4x book. The premium today rests more on asset-quality trust and a newly-settled leadership question than on current profitability.
Growth
This is volume-led growth, not margin-led. Advances and deposits are growing above 20% YoY, but standalone NII grew only 9% in Q1 FY27 - a sign that net interest margins are being squeezed even as the loan book expands. Profit growth outpacing NII growth (26% PAT vs 9% NII) suggests gains are coming from lower provisions and other income rather than the core lending spread widening. Improving asset quality is real and durable; margin compression, if it continues, is the thing to watch in the upcoming quarter.
Health
Balance sheet health looks sound: capital adequacy of 22.78% is well above regulatory requirements, gross NPA has fallen to 1.18% and net NPA to 0.27%, both improving YoY. Profits appear to be converting into genuine earnings rather than accounting artifacts - no revenue-recognition distortions were flagged in this quarter's reporting. The live concern here is business risk (margin compression from fast loan growth outrunning interest income), not financial or solvency risk - the bank is comfortably capitalised.
Ownership
Promoter holding (Uday Kotak and family) stands at roughly 25.87%, broadly stable over the past year, with 0% pledged - a clean promoter book. This level reflects RBI-mandated promoter stake reduction carried out over past years. No marquee individual value investor was found on the current shareholder register in the sources checked; holdings beyond the promoter group are dominated by FIIs, DIIs and mutual funds typical of a large private bank.
The View
The one thing to watch
The net interest margin print in the Q2 FY27 results on 24 October 2026 - it will show whether the Q1 gap between ~25% loan growth and ~9% NII growth was a one-off or the start of a trend.
Strengths
- +Asset quality improving: gross NPA down to 1.18% from 1.48% and net NPA to 0.27% from 0.34% YoY (Q1 FY27)
- +Strong capitalisation: capital adequacy ratio of 22.78%, no promoter pledge
- +Strong volume growth: advances up 24.7% YoY and deposits up 23.2% YoY (Q2 FY27 provisional update)
- +Leadership uncertainty resolved: RBI-approved CEO succession (Anup Kumar Saha from Jan 2027) removed an overhang that had weighed on the stock
Watchpoints
- !NII growth (9%) lagging loan growth (24.7%) in the most recent data - a margin-compression signal to confirm or dismiss in the 24 October 2026 results
- !Five-year shareholder return (+9.8%) has badly lagged both the Nifty (+25.1%) and peer Axis Bank (+60.4%) - the re-rating implied by the recent rally has not shown up over the longer horizon
- !Zurich Insurance's reported interest in buying Kotak's remaining 30% stake in the general insurance JV is unconfirmed and denied by Zurich as an active plan, but worth monitoring for capital or valuation impact
- !Valuation (~20-21x P/E) already prices in optimism against a sector median near 15x, while ROE of roughly 11-12% is middling for that premium
How sure are we about the data? · Moderate
Results figures cross-checked across Business Standard, Angel One and EquityBulls and were consistent. Valuation multiples (P/E 20.4x-21.6x, P/B 2.29x-2.42x, ROE 10.6%-11.9%) vary slightly by source (Screener, Trendlyne, AlphaSpread); the range rather than a single point figure is reported here deliberately. Shareholding data drawn from Trendlyne/Tijori as of June 2026; no source confirming a pledge change or a marquee individual investor was found. Full Q2 FY27 numbers (not yet released) should be checked directly on Screener after 24 October 2026.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 13 Oct 2026.