📈 Kotak Mahindra Bank’s Loanbook Surges to ₹4.4 Lakh Crore in Q1; Motilal Oswal Maintains ‘Buy’ Call
Mumbai – Kotak Mahindra Bank reported a significant year-on-year growth in its loanbook, which rose to ₹4.4 lakh crore in the first quarter of FY26. The private sector lender has demonstrated consistent traction in retail and commercial lending, making it a standout performer among peers.
According to the bank’s Q1 business update, the loanbook increased 19% YoY, led by robust growth in personal loans, home loans, and SME financing. This growth reflects strong demand for credit, improving consumption patterns, and stable macroeconomic conditions.
Leading brokerage Motilal Oswal Financial Services has maintained a ‘Buy’ rating on Kotak Mahindra Bank, citing its improving growth trajectory, healthy asset quality, and expanding net interest margins. The brokerage values the stock for its long-term earnings potential and strong liability franchise.
💡 Key Highlights from Kotak Mahindra Bank Q1 FY26 Business Update:
Loanbook: ₹4.4 lakh crore, up 19% YoY
Retail Lending: Strong pickup in home and personal loan disbursements
Asset Quality: Expected to remain stable with prudent risk management
CASA Ratio: Remains among the highest in the banking sector
Stock Outlook: Motilal Oswal sees upside potential based on valuations and growth indicators
🧠 Expert View: Vizzve Finance Analysis
Vizzve Finance highlights Kotak Mahindra Bank’s strategic focus on digitization and high-quality loan growth as a major catalyst for future earnings. With a diversified portfolio and a conservative approach to risk, the bank is well-positioned to navigate rising interest rates and economic volatility.
The firm also notes that investor interest has surged following this update, helping the blog to trend on Google Discover and rapidly index on financial news portals, attracting both retail and institutional readership.
FAQ
Q1. Why has Kotak Mahindra Bank's loanbook grown so significantly in Q1?
A1. The growth is primarily driven by increased retail demand, strong SME disbursements, and strategic expansion in secured lending segments.
Q2. What is Motilal Oswal's target price for Kotak Mahindra Bank?
A2. While the exact target price may vary over time, Motilal Oswal currently maintains a 'Buy' stance, citing strong fundamentals and attractive valuations.
Q3. How does this loan growth impact Kotak’s stock outlook?
A3. Higher loan growth improves interest income, boosts earnings potential, and generally strengthens investor sentiment, making the stock more appealing.
Q4. How is Kotak Mahindra Bank performing compared to peers?
A4. Kotak stands out for its high CASA ratio, disciplined lending, and better asset quality metrics compared to several private banks.
Q5. Is this the right time to invest in Kotak Mahindra Bank stock?
A5. Based on Motilal Oswal and Vizzve Finance insights, the current market scenario may present a favorable opportunity for long-term investors.
Published on:July 8,2025
Published by :Selvi
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