Barclays Equity Research has recommended 'Overweight' on Kotak Mahindra Bank (KMB) with target price of Rs 816 from Rs 763 in its report.

Commenting on the investment rationale, Barclays said, ''Kotak Mahindra Bank is planning for only 15% loan growth - this is substantially supported by its recent geographic expansion (underlying demand remains weak); the strong cost discipline of the non-bank businesses is allowing KMB to sustain investment in the bank.

Home loan and working capital credit demand could pick up in the summer, following which KMB could step up growth with little incremental cost impact; and KMB is comfortable on its credit quality front.

We update our estimates to build in our now better understanding of the lower operating cost growth. We roll forward valuations by one quarter; our updated target price is Rs 816. Maintain OW''

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