Shares of Kotak Mahindra Bank are expected to gain attention after the Reserve Bank of India (RBI) lifted restrictions on the lender, allowing it to issue new credit cards and onboard customers digitally. Analysts believe this move could boost investor confidence and potentially lead to a valuation re-rating.

 

Global brokerage firms have responded positively to this development. CLSA has given an ‘Outperform’ rating with a target price of ₹2,125, seeing a 9% upside. However, it noted that while sentiment is positive, the immediate impact on earnings may be limited. HSBC has maintained a ‘Buy’ rating with a ₹2,210 target, highlighting that this decision could strengthen Kotak’s customer base and earnings potential.

 

Morgan Stanley remains ‘Overweight’ on the stock with a ₹2,290 target, stating that Kotak’s strong profitability and growth potential could drive a re-rating. Macquarie, which also rates Kotak as ‘Outperform’ with a ₹2,200 target, expects the lifted ban to support growth and improve margins.

 

Out of 44 analysts covering the stock, 35 have a ‘Buy’ rating, four recommend ‘Hold’, and five suggest ‘Sell’. The stock closed at ₹1,945.50 on Wednesday, rising 1.4% on the day and gaining 12% over the past year.