Yes Bank vs Kotak Mahindra Bank vs ICICI Bank: Which Bank Stock to Buy Today

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Shares Yes Bank vs. Kotak Mahindra Bank vs. ICICI Bank: Following the announcement of strong first quarter results from Yes Bank, Kotak Mahindra Bank and ICICI Bank on Saturday, strong buying interest is expected for these private companies. According to stock market experts, the Nifty Bank Index recorded a rise of nearly 6% in last week’s session and after strong results in the first quarter, this rally in the Bank Nifty Index is likely to continue. They said all three banks are likely to attract bulls’ attention, however, ICICI Bank and Kotak Mahindra Bank may attract more buyers than Yes Bank.

After ICICI Bank’s strong Q1FY23 results, Jefferies raised its long-term target to 1070 to 1080 each while the ICICI Bank share price today is around 800 per share. Thus, the global brokerage expects a 35% increase in bank certificates after solid profits in the first quarter.

Anand Dama, Senior Research Analyst at Emkay Global Financial Services, labeled Kotak Mahindra Bank shares “buy”: “We expect the bank to deliver ROA of 2-2.1% thanks to accelerating growth and declining LLP, with an ROE of around 13-14% on FY23-25E due to its high capital levels.” He advised positional investors to buy Kotak Mahindra Bank at the target price of 2180 levels each.

Speaking on Yes Bank vs. Kotak Mahindra Bank vs. ICICI Bank actions, Ravi Singhal, CEO of GCL Securities, said: “All three banks delivered strong numbers in the first quarter, but relative to these three private lenders, ICICI Bank looks more promising.With 50% of a 1,100% increase in annual autonomous profit and 21% growth in advances, ICICI Bank shares are expected to outperform their peers over the long term.”

Speaking on the outlook for Yes Bank’s share price, Ravi Singhal of GCL Securities said, “Yes Bank shares are enjoying strong support in 12.50 while the immediate support of the title is placed at 13.75 levels. The stock may turn bullish after giving a break above 16.20 levels each at close and can go up to 19 levels each.

Advising investors to prefer ICICI Bank and Kotak Mahindra Bank to Yes Bank, Sumeet Bagadia, Executive Director of Choice Broking, said: “ICICI Bank and Kotak Mahindra Bank shares look better placed and it could give a return of 5 at 8% to its shareholders in the short term.”

ICICI Bank recorded growth of around 50% in net profit at 6,904.94 crores for the period April to June 2022 vs. 4,616.02 crores in Q1FY22. The private lender also recorded net interest income of 13,210.02 crores in Q1FY23, recording a jump of 20.8% vs. 10,935.76 crores in the first quarter of FY2021-22.

Similarly, Kotak Mahindra Bank reported net profit in the first quarter of the current fiscal year at 2,071.10 crore, or about 26.10% more than its net profit of 1,641.90 crore in the same quarter a year ago.

Similarly, Yes Bank reported a year-on-year jump in net profit of nearly 50% to 311 crores in the recently ended June 2022 quarter. In its first-quarter results announced on Saturday, Yes Bank also reported a 9.67% year-on-year jump in total revenue as its revenue climbed 13.47% in the said quarter.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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