Kotak says higher proportion of other income in the earnings "will keep ROEs suppressed" in the near term.
The brokerage said in a note that it also sees risks to growth in global oil demand from potential slowdown in the global economy.
Kotak says upstream segment is unlikely to surprise positively, ruling out any revival in production till FY2015 given lack of progress on development activities for satellite fields.
At 12.30 p.m., shares down 1.51 percent at Rs 767.80.
Copyright Thomson Reuters 2012