Kotak Mahindra Bank Q3 Results Review - Growth Momentum Continues; Asset Quality Improves: Axis Securities

Axis Securities Report

Kotak Mahindra Bank Ltd. continued its loan growth momentum at 23/6% YoY/QoQ, primarily driven by mortgages (up 29% YoY/ 4% QoQ), personal loans (up 70% YoY/ 10% QoQ) and credit cards (up 85% YoY/ 16% QoQ) with significant growth across categories.

With robust growth in advances and net interest margin reported at 5.47% (an expansion of 30 bps), Kotak Mahindra Bank’s net interest income reported growth of 30%/11% YoY/QoQ.

Other income grew by 54% YoY largely driven by 24% YoY growth in the fee income. Opex inched up by 30/12% YoY/QoQ primarily driven by a sharp rise in other opex by 35% YoY. As a result, the cost/income ratio increased by 90 bps to 50.3%.

However, strong NIM expansion. robust NII growth, provisions at similar levels (QoQ), and reduced restructured book (0.25% of advances versus 0.34% QoQ) allowed Kotak Mahindra Bank to report profit after tax at Rs 2,792 crore (up by 31/8% YoY/QoQ).

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