The private sector banking industry in India plays a pivotal role in the nation’s economic growth, reporting total assets exceeding $1,016.93 billion in fiscal year 2023. As of 2025, these banks collectively manage deposits worth over Rs 60.31 trillion, reflecting their expanding footprint and robust financial performance in the dynamic Indian market.
With a market capitalization of Rs 4.41 lakh crore, the shares of Kotak Mahindra Bank Ltd closed at Rs 2,222.50 per share, increased around 3.52 percent as compared to the previous closing price of Rs 2,147.00 apiece.
Morgan Stanley, one of the well-known brokerages globally, gave a ‘Buy’ call on this bank stock with a target price of Rs 2,650 apiece, indicating a potential upside of 20 percent from Tuesday’s price of Rs 2,222 per share.
The brokerage noted that the bank posted a solid performance in Q1 despite a challenging macro environment. It emphasized the lender’s strong balance sheet expansion, outpacing broader industry trends. Notably, average deposits grew 5 percent quarter-on-quarter and 13 percent year-on-year, reflecting strong customer confidence and effective deposit mobilization efforts.
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The private lender reported a 14 percent year-on-year growth in its loan book, reaching Rs 4.45 lakh crore as of June 30, 2025, up from Rs 3.90 lakh crore. On a quarter-on-quarter basis, advances rose 4.2 percent from Rs 4.27 lakh crore in March, indicating steady credit expansion and healthy lending momentum.
Moreover, the bank reported strong deposit growth, with end-of-period deposits rising 14.6 percent year-on-year to Rs 5.13 lakh crore and 2.8 percent sequentially from Rs 4.99 lakh crore in Q4. Average total deposits also increased, growing 13 percent YoY and 5 percent quarter-on-quarter, reflecting consistent momentum in deposit mobilization and customer confidence.
Additionally, Growth in low-cost CASA deposits remained subdued. Average CASA rose 4.2 percent YoY and 2.1 percent QoQ to Rs 1.92 lakh crore. However, end-of-period CASA declined 2.2 percent sequentially to Rs 2.10 lakh crore, though still up 7.9 percent from last year, indicating limited traction in deposit mobilization amid changing interest rate dynamics.
Written by Abhishek Singh
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