Kotak Mahindra Bank share price: ICICI Direct sees 22% upside post stock split; here’s why
The private lender shares are in the spotlight since its board-approved 1:5 stock split took effect on January 14, 2026.
- Jan 15, 2026,
- Updated Jan 15, 2026 11:36 AM IST
Brokerage firm ICICI Direct has maintained a 'Buy' rating on private sector lender Kotak Mahindra Bank Ltd, projecting a fresh target price following the bank's recent stock split and healthy provisional business figures for the third quarter.
On Wednesday, shares of Kotak Mahindra Bank settled 1.27% lower at Rs 421 per share on the BSE.
The private lender shares are in the spotlight since its board-approved 1:5 stock split took effect on January 14, 2026. Under this, each existing equity share with a face value of Rs 5 has been subdivided into five equity shares with a face value of Re 1 each.
“This move is aimed at improving share affordability and enhancing liquidity, with no impact on the bank’s fundamentals or overall valuation,” the brokerage said.
ICICI Direct has revised its target price for the stock to Rs 514, implying a potential upside of around 22 per cent from the current levels. The brokerage values the standalone bank at 2.6x FY27E ABV and has assigned a value of Rs 127 for its subsidiaries.
Kotak Mahindra Bank reported healthy business growth in Q3FY26. Net advances rose 16 per cent year-on-year (YoY) to Rs 4,80,229 crore as of December 31, 2025. Simultaneously, total deposits witnessed a 14.6 per cent YoY increase to Rs 5,42,638 crore, reflecting steady liabilities accretion, it said.
However, ICICI Direct pointed out a muted sequential growth in low-cost deposits, with CASA balances rising 11.9 per cent YoY. The brokerage observed that while sequential growth in advances outpaced deposits, the modest quarter-on-quarter CASA growth suggests continued pressure on the funding mix.
On the asset quality front, the bank has shown resilience. The brokerage highlighted that credit costs eased to 79 basis points in Q2FY26, led by normalisation in the MFI and credit card portfolios.
Brokerage firm ICICI Direct has maintained a 'Buy' rating on private sector lender Kotak Mahindra Bank Ltd, projecting a fresh target price following the bank's recent stock split and healthy provisional business figures for the third quarter.
On Wednesday, shares of Kotak Mahindra Bank settled 1.27% lower at Rs 421 per share on the BSE.
The private lender shares are in the spotlight since its board-approved 1:5 stock split took effect on January 14, 2026. Under this, each existing equity share with a face value of Rs 5 has been subdivided into five equity shares with a face value of Re 1 each.
“This move is aimed at improving share affordability and enhancing liquidity, with no impact on the bank’s fundamentals or overall valuation,” the brokerage said.
ICICI Direct has revised its target price for the stock to Rs 514, implying a potential upside of around 22 per cent from the current levels. The brokerage values the standalone bank at 2.6x FY27E ABV and has assigned a value of Rs 127 for its subsidiaries.
Kotak Mahindra Bank reported healthy business growth in Q3FY26. Net advances rose 16 per cent year-on-year (YoY) to Rs 4,80,229 crore as of December 31, 2025. Simultaneously, total deposits witnessed a 14.6 per cent YoY increase to Rs 5,42,638 crore, reflecting steady liabilities accretion, it said.
However, ICICI Direct pointed out a muted sequential growth in low-cost deposits, with CASA balances rising 11.9 per cent YoY. The brokerage observed that while sequential growth in advances outpaced deposits, the modest quarter-on-quarter CASA growth suggests continued pressure on the funding mix.
On the asset quality front, the bank has shown resilience. The brokerage highlighted that credit costs eased to 79 basis points in Q2FY26, led by normalisation in the MFI and credit card portfolios.