Kotak Mahindra Bank Limited has reported strong financial performance for Q4FY26, with significant growth in both deposits and advances. The bank disclosed its key operational metrics for the quarter ended March 31, 2026, under SEBI regulations, showing robust year-on-year expansion across all major categories.

Financial Performance Highlights

The bank's operational metrics demonstrate consistent growth momentum across key parameters. Net advances reached ₹4,95,892 crore at the end of March 2026, representing a substantial 16.2% increase compared to the same period last year. This growth trajectory reflects the bank's expanding lending portfolio and market presence.

CASA Deposits Performance

The bank's Current Account Savings Account (CASA) deposits showed particularly impressive growth, reaching ₹2,47,724 crore at the end of March 2026. This represents a 15.5% year-on-year increase and a strong 10.5% quarter-on-quarter growth, indicating improved customer acquisition and retention.

Quarterly Growth Momentum

The sequential quarterly performance demonstrates sustained growth across all metrics. Net advances grew 3.2% quarter-on-quarter, while total deposits increased by 5.5% compared to December 2025. The average figures for both advances and deposits also showed positive momentum, with net advances averaging ₹4,81,769 crore during the quarter.

Regulatory Compliance and Disclosure

The bank has filed this information under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosed figures are provisional and subject to audit by the bank's statutory auditors. The information has been made available on the bank's investor relations website for stakeholder access and transparency.

HSBC has maintained its Buy rating on Kotak Mahindra Bank while significantly reducing the target price, reflecting a cautious outlook amid geopolitical uncertainties and evolving market conditions.

Target Price Revision

The global brokerage has cut Kotak Mahindra Bank's target price to Rs 420 from the previous Rs 490, representing a substantial reduction while maintaining its positive stance on the stock. The revision comes as HSBC reassesses the bank's earnings potential in the current environment.

Key Concerns Identified

HSBC has highlighted several factors influencing its revised outlook for Kotak Mahindra Bank. The Middle-East conflict has created uncertainties that are expected to weaken the bank's earnings outlook across multiple parameters.

The brokerage anticipates cuts to several key performance metrics:

• AUM Growth: Expected moderation in asset under management expansion
• Margins: Pressure on net interest margins anticipated
• EPS: Earnings per share projections revised downward

Emerging Challenges

The analysis identifies emerging liability pressures as a significant concern for the bank's operational performance. Additionally, HSBC has flagged potential asset-quality risks that could impact the bank's credit portfolio and overall financial health.

Sector Preferences

HSBC's broader sector strategy shows a preference for private banks over PSU banks in the current market environment. The brokerage is also favoring NBFCs, specifically highlighting Cholamandalam Investment and Finance and Shriram Finance as preferred picks within the financial services space.

LIC Housing Finance has been identified as a defensive pick, suggesting the brokerage's focus on stability amid market uncertainties. This positioning reflects HSBC's strategic approach to navigating the evolving financial sector landscape while managing risk exposure.