Kotak Mahindra Bank: Shares Surge 4% on Strong Q1 Business Update
Kotak Bank's Q1 business update shows 14.60% YoY growth in total deposits to ₹5.13 lakh crore and 14.00% YoY growth in total advances to ₹4.45 lakh crore. However, CASA deposits declined 2.20% QoQ, with the CASA ratio falling to 41.00%. The credit-to-deposit ratio increased to 86.70%. Despite mixed results, analysts maintain positive ratings, and the bank's shares surged 4.00% in response to the update.

*this image is generated using AI for illustrative purposes only.
Kotak Bank , one of India's leading private sector banks, has released its business update for the first quarter, showcasing robust growth in both deposits and advances.
Deposit and Advance Growth
The bank reported impressive growth in its deposit and advance base:
- Total deposits increased by 14.60% year-over-year (YoY) to ₹5.13 lakh crore.
- Total advances grew by 14.00% YoY to ₹4.45 lakh crore.
This substantial growth in deposits and advances indicates strong customer confidence and the bank's ability to attract funds and expand its lending activities effectively.
CASA Deposits and Credit-to-Deposit Ratio
However, the bank faced some challenges in certain areas:
- CASA (Current Account Savings Account) deposits declined by 2.20% quarter-over-quarter (QoQ).
- The CASA ratio fell to 41.00%.
- The credit-to-deposit ratio rose to 86.70%.
Analyst Outlook
Despite the mixed results, analysts maintain a positive outlook on Kotak Mahindra Bank:
- Morgan Stanley reiterated its 'Overweight' rating.
- Jefferies reaffirmed its 'Buy' rating.
Market Response
The market responded positively to the Q1 business update, with Kotak Mahindra Bank's shares surging 4.00%.
As the fiscal year progresses, stakeholders will be keen to see if Kotak Mahindra Bank can maintain this growth momentum and how it translates into the bank's overall financial performance and market position.
Historical Stock Returns for Kotak Bank
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.22% | +2.78% | +4.26% | +24.53% | +20.64% | +62.94% |