As of the June quarter, Sumitomo Mitsui held 1.65% in Kotak, which will now move into public hands post the transaction. Promoters currently hold 25.88% in the bank, while the public shareholding stands at 74%.
The Japanese group has been a long-term strategic investor in Indian financial services and has previously partnered with Kotak in investment banking and securities.
Kotak Mahindra Bank remains one of India’s largest private-sector lenders and a diversified financial services conglomerate. With a nationwide footprint of 5,440 branches and 2,927 ATMs, the bank offers services across retail, SME, corporate, and investment banking.
Brokerages remain constructive on the stock despite the block deal. Axis Securities has reiterated a BUY call with a target price of Rs 2,178, implying an upside of 10% from current levels.
The brokerage noted that asset-quality pressures in microfinance and unsecured segments have largely peaked, while growth is expected to pick up in personal loans, credit cards, and mid-market lending. Margins, which dipped in recent quarters due to rate actions, are expected to recover from the second half of FY26 as deposit costs ease and the share of higher-yielding unsecured loans rises.Axis expects Kotak to deliver a healthy 17% credit growth CAGR between FY25–28, with margins stabilising at 4.7% in FY26 before improving to around 5% by FY28.While Sumitomo Mitsui’s sale may trigger some short-term supply pressure, analysts say the bank’s fundamentals remain strong and its valuation leaves room for upside. For long-term investors, Kotak continues to be seen as a quality play in India’s private banking space.
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