Kotak Mahindra Bank Share Surges 4% On Strong Q1; Stock Up 23% YTD; What Should Investors Do? Buy/Sell/Hold

Kotak Mahindra Bank shares surged 4% on Tuesday after the private sector lender reported strong double-digit growth in deposits and advances for the June quarter of FY26. This provided a much-needed boost to the stock, which had seen some correction over the past few days. A rise in Kotak Mahindra shares pushed the Nifty Bank Index higher, which was trading in green at 57,148, up 0.35 as of 01:15 PM.

Kotak Mahindra Bank Q1 FY26 Update

Kotak Mahindra Bank in the quarter ended June 30, 2025, which is Q1 FY26, reported a huge rise in deposit mobilisation and loan growth. The private sector lender has reported double-digit YoY growth in total deposits and advances this quarter.

The bank's total deposits stood at Rs. 5.12 lakh crore as of June 30, 2025, rising 14.6% YoY and 2.8% QoQ. Average total deposits also rose to Rs. 4.91 lakh crore, up 12.9% YoY and 5% QoQ, due to traction in customer savings and term deposit inflows.

Meanwhile, the CASA (Current Account Savings Account) performance remained stable. Average CASA deposits grew by 4.2% YoY and 2.1% QoQ to Rs. 1.91 lakh crore. However, on an end-of-period basis, CASA deposits slightly declined by 2.2% QoQ, though they still posted a healthy 7.9% YoY growth, totalling Rs. 2.09 lakh crore.

Kotak Mahindra Bank also posted strong growth in its lending operations as the bank's net advances (EOP) rose to Rs. 4.44 lakh crore, with a 14% YoY and 4.2% QoQ jump.

Kotak Mahindra share price performance lately

On July 8th the stock opened at Rs. 2185, rising 1.6% from the previous close of Rs. 2149.80. The stock then jumped 4.1% to the intraday high of Rs. 2241.50. Kotak Mahindra Bank shares in the 30 days of trading have gained almost 4% and 25% so far this year.

Nuvama Institutional Equities has maintained a "Hold" rating on Kotak Mahindra Bank, maintaining a neutral stance.

The brokerage in its Q1 review estimates that "the banking and NBFC sector is likely to post a soft performance in Q1 FY26. With systemic loan growth falling below 10% YoY and a 0.5% QTD decline, lenders are expected to face headwinds from slowing credit demand and narrowing net interest margins (NIMs) triggered by rate cuts. "

"While liquidity has improved and eased deposit growth concerns, asset quality could see seasonal weakness for some banks. On the other hand, NBFCs are expected to fare better, gaining early from the interest rate easing cycle."

About Kotak Mahindra Bank

Kotak Mahindra Bank is a private sector bank in India which was Established in 1985. The bank provides services such as savings accounts, loans, wealth management, credit cards, and digital banking solutions.

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