Shares of Kotak Mahindra Bank experienced a significant rally, climbing 4.31% to Rs 434.25 in early trading on Tuesday, October 6, 2026. This surge boosted the lender's market capitalization to Rs 4.29 lakh crore, following the announcement of robust business updates for the second quarter.
Kotak Mahindra Bank Sees Strong Q2 Growth
The bank reported impressive financial performance for the quarter ending September 30, 2026. Net advances saw a substantial 24.7% year-on-year increase, reaching Rs 5.77 lakh crore. On a quarter-on-quarter basis, net advances grew 12.7% from Rs 5.12 lakh crore as of June 30, 2026, with average net advances standing at Rs 5.47 lakh crore.
Total deposits also showed strong growth, rising 23.2% year-on-year to Rs 6.51 lakh crore. Within this, CASA (Current Account Savings Account) deposits increased by 11.3% to Rs 2.49 lakh crore. Additionally, the bank recorded $5.78 billion (approximately Rs 55,344 crore) in FCNR(B) deposits under the RBI’s swap facility, with $1.68 billion (around Rs 16,110 crore) in advances held by its international branches.
Goldman Sachs Upgrades Target Price
Reacting to the stronger-than-expected Q2 business update, global investment bank Goldman Sachs reiterated its "Buy" rating for Kotak Mahindra Bank shares. The firm significantly raised its target price to Rs 540.00, up from its previous target of Rs 416.30.
Goldman Sachs highlighted several factors contributing to its optimistic outlook. The brokerage cited improved clarity on leadership, a strong liquidity position at what it considers the bottom of the rate cycle, and a potential acceleration in loan growth driven by unsecured loans, all against the backdrop of attractive valuations. The bank anticipates an impressive Earnings Per Share (EPS) growth of 19% CAGR during FY26-FY29E, finding this very appealing at 15x FY28 Price-to-Earnings.
Provisional Figures
It is important to note that the figures reported for September 30, 2026, are provisional and are subject to a limited review by Kotak Mahindra Bank's statutory auditors.