Kotak Mahindra Bank Q2 Review - Card Delinquencies Drive An Increase In Slippage Run-Rate: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Kotak Mahindra Bank Ltd. posted a standalone profit after tax of ~Rs 33.4 billion (5% miss, 5% YoY growth). Consolidated PAT stood at Rs 50.4 billion (13% YoY growth) in Q2 FY25.Net interest income grew 11.5% YoY to Rs 70.2 billion (inline). Net interest margin moderated 11bp QoQ to 4.91%. Other income grew 16% YoY to Rs 26.8 billion (11% miss). Total revenue thus grew 12.7% YoY.Advances rose 14.7% YoY/2.5% QoQ to ~Rs 4 trillion while deposits grew 15.1% YoY/3.1% QoQ. Current account and savings account mix improved 20 bp QoQ to 43.6%. Fresh slippages were elevated at Rs 18.7 billion (Rs 13.6 billion in Q1 FY25). Gross/net non-performing asset ratio rose 10 bp/8 bp QoQ to 1.49%/0.43%. Provision coverage ratio declined 344 bp QoQ to 71.4%. Kotak Mahindra Bank entered into an agreement to acquire the personal loan book of Standard Chartered Bank (Rs 41 billion) to further fortify its position in the retail credit market. The acquisition is likely to be completed in the next three months, subject to regulatory/other approvals. Kotak Mahindra Bank is navigating well through the limitations that regulator has imposed on the bank and potential lifting of the ban will further aid operating performance. We fine-tune our earnings and estimate Kotak Mahindra Bank’s return on asset/return on equity at 2.2%/13.6% by FY26. Reiterate Neutral with a target price of Rs 1,950 (based on 2.2 times FY26E adjusted book value)..Click on the attachment to read the full report:.Kotak Mahindra Bank Q2 Results: Profit Rises 4.8% As Provisions Rise Sharply.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Kotak Mahindra Bank Q2 Review - Card Delinquencies Drive An Increase In Slippage Run-Rate: Motilal Oswal

The bank is navigating well through the limitations that regulator has imposed on it and potential lifting of the ban will further aid operating performance, says the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Kotak Mahindra Bank Q2 Review - Card Delinquencies Drive An Increase In Slippage Run-Rate: Motilal Oswal

The bank is navigating well through the limitations that regulator has imposed on it and potential lifting of the ban will further aid operating performance, says the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP