Overweight on Kotak Mahindra Bank, target Rs 810 : Morgan Stanley

Morgan Stanley has an overweight call on Kotak Mahindra Bank Ltd. with a target price of Rs 810. The current market price of Kotak Mahindra Bank Ltd. is Rs 779.55 Time period given by analyst is year when Kotak Mahindra Bank Ltd. price can reach defined target. The BSS Microfinance acquisition is likely to be completed in the next 3-4 months for Rs 1.4bn cash. The BSS extends microfinance to poor rural and semi-urban women via JLG mechanism. With AUM of Rs 4.8bn, BSS MFI is the 25th largest NBFC-MFI in India, said the Morgan Stanley note. The acquisition now contributes 0.4 per cent of loans/profits. The objective is to directly enter fast-growing and highly profitable MFI segment. The acquisition will give access to priority sector eligible assets.