Kotak Mahindra Bank Q4 Results Review - Strong Quarter; One-Off Gains Boost Earnings Further: 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 41.3 billion (21% beat), which grew 18.2% YoY in Q4 FY24 aided by steady revenue growth and one-off gains from the reversal of alternative investment fund provisions (Rs 1.57 billion), interest on IT refund (Rs 1.4 billion), and tax credit (Rs 2 billion). Consolidated profit after tax grew 16.9% YoY to ~Rs 53.4 billion. Net interest income grew 13% YoY to Rs 69.1 billion (in line; up 5.4% QoQ) as net interest margin improved 6 basis points QoQ to 5.28%. Other income grew 36.2% YoY (17% beat) for the quarter.Advances grew 17.6% YoY/4.6% QoQ to Rs 3.8 trillion, while deposits rose 23.6% YoY/10% QoQ. Current account and savings account mix moderated 220 bp QoQ to 45.5% in Q4 FY24. Fresh slippages increased 11% QoQ to Rs 13.1 billion. Gross non-performing asset improved 34 bp QoQ to 1.4%, while net non-performing asset remained stable at 0.34%. Provision coverage ratio declined 464 bp QoQ to 75.9% as the bank carried out higher write-offs in the unsecured segment. We fine tune our earnings estimate; we estimate Kotak Mahindra Bank's return on asset/return on equity at 2.3%/14.1% by FY26. Reiterate Neutral with a target price of Rs 1,700 (based on 1.8 times FY26E adjusted book value plus Rs 565 for subsidiaries)..Click on the attachment to read the full report:.Kotak Mahindra Bank Q4 Results Review - Robust Quarter; Undemanding Valuations: Dolat Capital.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 Q4 Results Review - Strong Quarter; One-Off Gains Boost Earnings Further: Motilal Oswal

Business growth steady; restoration of BAU remains a top priority

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Kotak Mahindra Bank Q4 Results Review - Strong Quarter; One-Off Gains Boost Earnings Further: Motilal Oswal

Business growth steady; restoration of BAU remains a top priority

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